From Kickstarter to Indiegogo, crowdfunding is growing in popularity and is a business realm changing rapidly. Now CNBC has partnered with Crowdnetic, a company that tracks and analyses crowdfunding projects, to launch a new crowdfunding index. The new index will give people an inside view at companies looking to trade equity for capital, instead of merely receiving a discount or a free product in exchange for an investment—the way crowndfunding currently operates. Right now only accredited investors can receive equity for their investment, and the Securities and Exchange Commission needs to change regulations in order to broaden the pool of investors to include the greater population. But while the red tape is being cut, this new index will do a great deal to give new businesses a pathway into the living rooms of millions of Americans, and that’s a good thing.
CNBC launches crowdfunding index
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