Crowdfunding is an evolving method of raising money via the Internet to fund a variety of projects. The Jumpstart Our Business Startups (JOBS) Act created an exemption under the federal securities laws so that crowdfunding can be used to offer and sell securities to the general public. The JOBS Act also established the regulatory structure for raising capital through securities offerings using crowdfunding, including limits on the amount of money companies can raise and investors can invest.
What are the risks? Who can invest? How much? There’s detailed information in our Investor Bulletin.
Crowdfunding investments can only be made through an online platform operated by an intermediary (a registered broker-dealer or funding portal). These intermediaries link potential investors to companies seeking crowdfunding investments.
Looking to register as a funding portal? There is information here.
Additional information on compliance for crowdfunding intermediaries is here.
Looking for information about registered broker-dealers? Check out FINRA’s BrokerCheck.
Searching for a list of registered funding portals? Click here.
Additional information on compliance for issuers is here.