Equity crowdfunding is a great funding option for startups looking for idea stage capital to grow and scale their business. By offering equity in their company to accredited investors, entrepreneurs gain vital funding.
The JOBS ACT, which was signed into law on April 15th, 2012, aims to legalize equity crowdfunding among non-accredited investors by removing the ban on general solicitation and removing the accredited investor requirement that is currently in place. The JOBS Act has not yet been enacted by the SEC. To learn more about equity crowdfunding, see below.