Startup Newsletter August 2018
While most startups and investors are familiar with the tried-and-true methods of startup fundraising, there is a relatively new funding method available that many startups and investors alike are not aware of yet!
What is equity, or regulation, crowdfunding?
We are talking about regulation crowdfunding, often referred to as equity crowdfunding, which is the SEC approved method of using the internet to sell securities. It’s similar to how non-equity crowdfunding sites such as Kickstarter allow startups to pre-sell their product in order to fund their company. The big difference between regulation crowdfunding and product-based crowdfunding is that regulation crowdfunding results in the company providing equity, or future equity via convertible notes, in exchange for the funds obtained during the crowdfunding campaign.