What is equity crowdfunding?
What is crowdfinancing?
What is investment crowdfunding?
What is equity and debt crowdfunding?
They are all business models launched by Titles II, III and IV of the JOBS Act of 2012.
Unlike the original crowdfunding offerings, restricted to donations or the purchase of a product or reward, investment crowdfunding allows entrepreneurs to seek early stage capital. This form of financing allows issuers to promise ownership (equity) or to promise future returns (debt) -- whereas rewards-based crowdfunding merely gives rewards for contributions to the company.
Investment crowdfunding has become a helpful vehicle to structure investment offerings, tell a story, get new investors, and grow a company.
What is the JOBS Act?
The Jumpstart Our Business Startups Act (JOBS Act) was passed with bipartisan support by Congress and signed into law by President Obama in April 2012. The JOBS Act expands investment opportunities to non-accredited investors, historically excluded, and it greatly expands the options available to issuers seeking accredited investors.
P2P and company-led platforms allow entrepreneurs to raise money in ways not permitted for over 80 years, while investor-led platforms can lead to better terms for the investors.
Our Exempt Offerings Library includes books and audiobooks on crowdfunding, exempt offerings, and other topics.
Our monthly reporting service, Exempt Offerings Reporter, summarizes recent developments in the world of Blue Sky law and regulation.