Like the entrepreneurs on Kickstarter trying to raise money to sell hot-chocolate cubes, cut an album, or manufacture a wireless dive-log device for scuba divers, later-stage private companies may soon be finding investors online. But will crowdfunding for firms that are more established and have a solid operating history be the bonanza it is for some start-ups?
It’s possible, given that the Title II section of the JOBS Act gives companies and their broker-dealers the ability to market Regulation D Section 506(c) private placements on a widespread basis. Some broker-dealers are launching an online portal to do just that, in an attempt to open the floodgates to “sophisticated pools of equity capital funding.”
To read the original article: Reg D Section 506 private placement crowdfunding
