Source: Catherine Clifford, Entrepreneur.com
As of May 16, 2016, entrepreneurs have a new way to raise money.
Equity crowdfunding, whereby entrepreneurs sell a portion of their companies in exchange for cash, has historically only been available to accredited investors. As of today, however, anyone can invest in a startup through equity crowdfunding.
This rule change has been a long time coming. Industry stakeholders are eagerly anticipating the spigot for this new pipeline of capital being turned on.
However, launching a new investment vehicle is a serious undertaking and especially in the beginning, there is sure to be some agitation as this new funding mechanism launches.
For a complete explanation of what’s happening, why it matters and what each side of the financial relationship — the entrepreneur and the investor — should expect, have a look at our five-part feature series on this next generation of equity crowdfunding.
The overview: What’s happening and why it matters.
Equity crowdfunding 2.0: What entrepreneurs need to know.
Equity crowdfunding 2.0: What investors need to know.