CROWDFUNDING

are funding portals allowed to provide investment advice?

NO

JOBS Act 2012

"Jumpstart our business" directs the SEC to create rules exempting crowdfunding from the securuites registration laws

income or networth less than 100k,

.limited to 2000 or 5% of the lesser of your income or networth

Limit on capital raised

1million per year via internet

2008 crowdfunding

Hurricane Katrina

Broker dealers and funding portals that are registered w/ SEC and FINRA

are permitted to offer and sell securities on behalf of issuers to the investing public using

through crowdfunding, pp; able to invest in entrepreneurial starts via

broker dealer or funding portal

may 2016

companies can use crowdfunding to offer and sell securities to the investing public

if greater than 100k

invest up to 10% of annual income or networth, cannot exceed 100k

Cautions

must meet SEC rules if they ask for investments immediately small business = higher risk info limited to whats on funding portal

Crowdfunding

online money-raising strategy that begins as a way for the public to donate small amounts of money to charities

original crowdfunding in US

statue of liberty grover cleavland would not fund it

Definition of Crowdfunding

the act of outsourcing tasks, traditionally performed by an employee/ contractor to an undefined large group of people or community, through an open call

Funding portal

website, platform that advertises investment opportunities and facilitates the payment from investor to issuer