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!
