Sunday, October 27, 2013

Equity Crowdfunding

According to KPLU, Northwest entrepreneurs will soon have another way to raise money for small and new businesses. 

The Securities and Exchange Commission on Wednesday put out long-delayed draft rules for "equity crowdfunding." 

The Draft proposed new rules that would allow startup companies to sell stocks over the Internet to small-time investors. To address concerns about risk and possible fraud, the SEC's proposed rules require entrepreneurial companies to seek investors only through registered intermediaries called "funding portals." The online portals will be required to run background checks on stock issuers and enforce limits on the size of the investments by individual investors.

This is yet another avenue for creative financing open to real estate investors.

Happy investing!

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