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Tech Jun 2011 - "Technology: SEC Considers Revising Rules for Online Funding"

Tech Jun 2011 - "Technology: SEC Considers Revising Rules for Online Funding"

Tech Jun 2011 - "Technology: SEC Considers Revising Rules for Online Funding"

Excerpt


Technology: SEC Considers Revising Rules for Online Funding



Finding new ways to raise capital is important to many small business owners, especially since traditional credit has slowed following the recent financial crises. New challenges require new solutions. To that end, innovative entrepreneurs have developed crowd-funding online sites as a new way for small businesses to raise capital. The growing popularity of crowd-funding along with lobbying efforts from the small business sector have prompted the U.S. Securities and Exchange Commission to agree to revisit the current regulations governing fund-raising for small businesses. Currently, crowd-funding supporters are waiting for the SEC findings and hoping that existing fund-raising rules that ban the sale of equity on such sites will be eased so startups can sell a limited amount of stocks online.


 


 



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