Companies don’t need to wait until the beginning of next year and new federal rules to start raising money over the Internet. And they don’t have to offer perks or products to supporters.
A handful of upstarts are working to make crowdfunding a reality—now. They’re creating platforms using existing rules that give businesses the chance to raise money online, and offer investors a chance to roll the dice on private companies, no matter what the Securities and Exchange Commission does as it writes new national rules for companies to sell shares socially. These entrepreneurs are aiming at niche markets opened by technology rather than regulation.
The SEC is writing rules expected to go into effect in early 2013 that will allow private companies to sell shares worth up to $1 million over the Internet. Already, sites like Kickstarterand Indiegogo have opened the way for individuals and companies to raise money by offering rewards such as a signed edition of a book or an early version of a product.
But there are other ways for small businesses to raise money, and startups are rolling them out.
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- Crowdfunding & the JOBS Act: What Does This Mean For You? (grasshopper.com)
- Success of Crowdfunding Puts Pressure on Entrepreneurs (nytimes.com)
- Standoffer helps you sift through all the crowdfunding platforms. (crowdfundingtimes.wordpress.com)