Some entrepreneurs wonder if they should bypass traditional investors and go with crowdfunding, based on the assumption that it’s easier to raise money that way. While it’s true that some successful startups sowed their very prolific seeds through crowdfunding—eventually attracting larger VC money—it may not be the panacea you think it is.
Equity crowdfunding is getting even more interest now that the Securities and Exchange Commission (SEC) has passed Regulation A+ updates. This regulation is a part of Title IV of the Jumpstart Our Business Startups (JOBS) Act.
