The SEC comment period for the proposed crowdfunding rules ended in late January. Hopefully, the final rules will be issued in the spring, and crowdfunding can finally begin.
If you’re interested in using crowdfunding to raise money for your business, you will need to find an SEC-approved crowdfunding portal. Of course, none of these portals will be approved until after the SEC issues its rules. However, existing sites like SeedInvest and CircleUp – which currently help companies sell shares to accredited investors – are expected to be among the approved portals. Both of these portals use a detailed process to vet investors based on the SEC requirements.
Check out our earlier posts on crowdfunding if you’d like more information on the basics:
https://detroitbusinesslaw.com/2013/11/20/the-latest-on-crowdfunding/
https://detroitbusinesslaw.com/2013/07/22/crowdfunding-update-finally-some-action-from-the-sec/
