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Know About Equity Promising Crowdfunding

After waiting for a long period of time, Regulation Crowdfunding finally released by the U.S. Securities and Exchange Commission (SEC). The SEC also set a May 16, 2016 as the official date to allow equity crowdfunding sites offer services. Since May 2016, a group of websites that receive approval for the operation has entered the US crowdfunding market.

Crowdfunding Diversified Services

A quick from the US crowdfunding market, people will know that the market is kind of messy and very confusing. The players in the cooperative crowdfunding market, including the website has to offer diversified services.

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The players there including a donation based websites like Kickstarter and Indiegogo, a website that has been approved by state laws and regulators for equity crowdfunding intrastate, and websites that offer the service under Regulation D and / or Regulation A, or for accredited investors only.

New sites that are supposed to offer Title III, the equity-based, or just equity crowdfunding service might have added more confusion for businesses and investors. Among the new sites, some of them already in crowdfunding business for several years and opened to accredited investors or investments received by Regulation D / A, etc.

Bright future

Over time, any website that wants to offer Title III (or equity) crowdfunding must get approval from the regulator. But, now, either the business owner or investor should find out what types of sites offer a crowdfunding service before using any of them. Perhaps, it is one of the reasons that crowdfunding sites including some with millions of visitors have seen a significant drop in traffic in recent months.