Saturday, March 30, 2013

SEC Greenlights Currently Legal Crowdfunding

According to TechCrunch, "The SEC today paved the way for a new era of venture capital investing by stating it won’t pursue enforcement action against FundersClub, whose platform lets any accredited investor fund startups in exchange for equity. Before, some thought FundersClub’s founders could face jail time for violating finance laws. FundersClub’s model could be used by others to raise capital online for startups before the JOBS Act goes fully into effect."

This is a good sign, but not the small scale equity crowdfunding approval we have been waiting for. The SEC validated something that is currently legal to do: it let investors with over a million in net worth invest using an online platform. Yawn. See article links below.

Nothing to see here. Please move on.
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