Taking The ‘Fun’ Out Of Crowdfunding

Thursday, December 12, 2013

Because it sounds good, the term “crowdfunding” is applied, sometimes confusingly, to vastly different funding models, including “donation funding,” (e.g. Kickstarter), in which no investment is involved and “backers” expect no return; “advertised” private offerings, which have only been legal since September and allow the general solicitation of investors directly by private companies seeking funding, known as “issuers”, or through intermediary sites like CircleUp, provided all investors are “accredited” (meaning wealthy); and “real” equity crowdfunding contemplated by the JOBS Act.

Source: Forbes (link opens in a new window)