Q: I’m the founder of a small business that, though successful, will require an additional infusion of capital if operations are going to continue to grow. I’ve exhausted my current network of investors, primarily friends and family, leaving me to consider other alternatives to finance the company’s growth. Is crowdfunding a viable option?
A: On Oct. 30, in what has been hailed by some as a seismic shift in federal securities regulation, the U.S. Securities and Exchange Commission adopted long-awaited rules to permit companies to sell unregistered securities to the general public through so-called “equity crowdfunding” offerings, limited to $1 million during a 12-month period.
