WHAT IS CROWDFUNDING

What is crowdfunding?

Crowdfunding is a way for people, businesses and charities to raise money. It works through individuals or organizations who invest in (or donate to) crowdfunding projects in return for a potential profit or reward.

Is crowdfunding legal?

President Obama signed the Jumps-tart Our Business Startups Act (known as the JOBS Act) into law on April 5, 2012. One highly anticipated provision of the JOBS Act, Title III, is entitled ”Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012” or the ”CROWDFUND Act.” Title III enables “crowdfunding,” or the ability to sell securities in small amounts to a large number of investors.