The SEC has adopted new crowdfunding rules. They are somewhat complex but will offer the smaller venture a safer way to accomplish a “friends and family” offering. The rules will also give that venture other sources of capital. Crowdfunding may, in addition, give, to those so inclined, a new avenue for fraud. An article in The New York Times, here, gives an overview and I give you a link to the text of the regulation. The release is long but the rule is not really that complex. I plan to post a blog on the effect of the new rule of the SEC upon the existing Massachusetts crowdfunding rules soon.

Advertisements