Crowdfunding Sites Could Help VCs, Accelerators Raise Cash Too

Image courtesy Wikimedia CommonsSites that enable technology startups to “crowdfund”–tap dozens of small-scale investors for needed capital–could help venture and seed investors raise their own funds online, VentureWire reports today (subscription required).

At least one well-known seed-stage fund, Mountain View, Calif.-based 500 Startups, has tried a form of crowdfunding in recent weeks using the sites SecondMarket and AngelList. Others are considering the same method.

The method, known as Reg-D, enables companies to raise capital from accredited investors online. It has been increasing of late, spurred by the year-old JOBS Act, a law that is expected to eventually allow even non-accredited investors to buy shares of privately held startups online. The U.S. Securities and Exchange Commission is expected to issue regulations around crowdfunding by these “everyday” investors in coming months.

Read more at WSJ

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