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Crowdfunding Laws: Will They Help or Hurt My Business?

Crowdfunding Laws: Will They Help or Hurt My Business?
It seems like new buzzwords pop up all the time and the one that I am hearing a lot about lately is “crowdfunding.” I know it’s been around for several years, but it seems to be picking up speed and becoming a readily accepted method of fundraising for both nonprofit and entrepreneurial ventures. As this new virtual tool continues to gain popularity, laws have been passed to regulate these financial exchanges. If you are crowdfunding or are just curious about garnering additional funds for your small business, there are a few guidelines that you should be aware of. Let’s get some of the basics out of the way first. If you’re not familiar with crowdfunding, Chance Barnett of Forbes provides a great explanation: “There are 2 main models or types of crowdfunding. “The second and more recent model is investment crowdfunding, where businesses seeking capital sell ownership stakes online in the form of equity or debt. Now keep in mind that the JOBS Act was passed back in 2012. Comments

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