If your clients have ever wanted to explore venture capital (VC) investing, they soon may have more choices under a model called "crowdfunding." As enabled by Congress in the 2012 JOBS Act, crowdfunding allows entrepreneurs to promo equity investment in their companies through SEC-approved portals. In July of this year, the SEC advanced the concept by eliminating the ban on advertising 506(c) securities issuers to accredited investors.
At a later date, the SEC will decide on how to implement Title III of the JOBS Act, which will allow non-accredited investors to participate in crowdfunding.
Until now, most top crowdfunding sites have been donation-based. Forbes' reported on the Top 10 crowdfunding sites.
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