Do you remember in April when Congress enacted the JOBS Act allowing startup companies to raise up to $1 million per year from investors by the Internet without doing the usual things required by the Securities and Exchange Commission to sell stock (called crowdfunding)?
Many startups anticipated selling shares to small investors online soon, but it hasn’t happened yet because SEC rules aren’t in place.
Crowdfunding is rooted in businesses raising money from small donors. Originally, donors gave money to support an idea they believed in. For example, a filmmaker would use his website to seek donations to make a film. People who liked the idea gave him small amounts of money. A thank-you note or a DVD of the film was all donors expected in return.
Read More at The News of Orange County