When marketing executives Michael Migliozzi II and Brian Flatow decided they wanted to buy Pabst Blue Ribbon, a private beer company, they created BuyaBeerCompany.com to ask the public for financial help. The idea was quickly shot down by the SEC, prompting the recent discussion on where “crowdfunding” fits into the scheme of private businesses.
Crowdfunding, the practice of private companies soliciting the public for investments, has been made popular by websites such as Kickstarter, IndieGoGo, ProFounder and others. These are great for individuals and small groups looking for a leg up, but when it comes to private businesses using these as an investment tactic in exchange for shares in the company, the SEC wants everything to be nice and documented. Thus, the commission created a crowdfunding bill to officially allow private companies legal access to crowdfunding.
To read the full, original article click on this link: Crowdfunding: Where it has been and where the new bill is taking it (infographic) | VentureBeat
