Crowdfunding presents a tremendous opportunity for private companies to raise capital by collecting small contributions from a large number of investors.
Although crowdfunding has been around in some shape or form for centuries – praenumeration is considered an early form of this business model – it has just started to become regulated. The SEC and FINRA recently issued proposed rules, but there are still unknowns as to how it will play out, and there will certainly be more debate and regulation to come.
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