Entrepreneurship is booming. Startups are popping up all around the world. A problem for many fledgling companies is still that it’s hard for them to raise enough money to be able to bring their innovative and new ideas to the public. But in the U.S., a new door is opening for them to get access to capital. New rules make it possible, from next year onwards, for everyone to participate in equity crowdfunding. Up until now only accredited investors could do that. Equity crowdfunding is the exchange of a piece of a company for cash. Under the new rules, companies can raise up to $1 million in a 12-month period through a crowdfunding campaign. This democratizes crowdfunding, and makes it possible for all of us to support ideas and new companies we like. If a wider pool of people can take a stake in a company, it means there’s more power to the people.
Small investors now allowed to participate in equity crowdfunding
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