Last week I mentioned the possibility of using crowdfunding to fund a new venture to my dad. To paraphrase, his response was “No, I’m not an artist or musician…why would anyone want to give me money?” That’s when I realized that he was not aware that the 2012 JOBS Act authorized equity crowdfunding (i.e. it allows companies to raise up to $1,000,000 by selling stock or equity from an online crowdfunding site to ordinary adults). Unfortunately, it is not quite legal yet - you still have to wait for the SEC to finalize the rules before you can start using equity crowdfunding. (However some anticipate it will be done later this year or early next year.)
With only 8 months to go, it’s time to start preparing! But first, you must read Kendall-Almerico’s simple but comprehensive overview of the rules and what you can expect. If you don’t have time to read, here is an infographic by Fundable.
