Equity crowdfunding waits on the SEC

SECCrowdfunding mechanisms like Kickstarter and Indiegogo have revolutionized how artists and creative ventures raise money. By enabling users to pitch an idea online and then hype it relentlessly through social media, the average fundraiser can reach far beyond his personal network. Filmmakers, musicians and even technology companies have used crowdfunding to raise impressive sums, sometimes into six and seven figures.

The process has been criticized for being inefficient and for appealing to a limited demographic of young urbanites with twee taste and too much time. Even so, it’s undeniable that crowdfunding works. Fortune magazine reports that crowdfunders raised $2.8 billion this year.

One thing that has prevented crowdfunding from entering the mainstream business community, however, is that as of now the average user can’t invest in companies through crowdfunding.

Read More at Salon

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