Business Crowdfunders Face Investor Liability Minefield

Entrepreneur.com recently published a post on use of crowdfunding by businesses, which is a topic that’s really been underreported.

Traditionally, if a business, whether startup or ongoing, wanted to attract investor capital, it had to comply with Securities and Exchange investor qualification regulations which are rather cumbersome, to say the least,

When crowdfunding happened on the scene, we, among others, opined that it was a great idea, and the SEC was slow the react.

But, it’s there now, with Rule 506(c), which gives some guidance for investor accreditation. And, it could probably be said that anyone wanting to use crowdfunding for business purposes should probably consult a lawyer. However, it’s hard to find a secuities lawyer who knows what’s going on.

Rather than repeat all the Entrepreneur.com article, here’s the link: http://www.entrepreneur.com/article/2277764.

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