It has been a whirlwind last few days in the crowd-funding world. For those of you who have not yet tuned in to this, there is legislation afoot, backed by the President and (so far) the House, that would enable, in effect, mini- IPOs as a way to fund startups. Forget everything you know about the rules of equity financing for seed-stage startups.
What’s coming: So long as you raise less than $1M, and individual investors don’t put in more than a small amount (somewhere between $1,000 and $10,000, depending on whose bill you are talking about), then you are A OK to go raise the money. You can do a general solicitation (e.g. Facebook blast). AngelList could be opened up to everyone. Your local paper could publish a list of local businesses looking for capital. This is a game change.
To read the full, original article click on this link: Crowdfunding: The Train to the Future Is Leaving—Get on Board | Xconomy
