I posted an article last fall explaining the new type of Crowdfunding coming as a result of the Jumpstart Our Business Startups (JOBS) Act that became law on April 5, 2012.
I said in that post that I would keep you up to date on the progress of the Securities and Exchange Commission (SEC) as they developed the rules and regulations that would put the Crowdfunding section of the JOBS Act into practice.
Here is what has happened since the passage of this law over a year ago:
Crowdfunding is still limited to “accredited” investors, or donations, only. Non-accredited investors still cannot invest directly into non-public small businesses. (See my article of Nov. 19,2012 for an explanation of “accredited” investors.)
Interestingly, however, there have been dozens of new crowdfunding sites popping up on the Internet in anticipation of the release of the SEC regulations.
There are far too many of them to list here, so I suggest you connect with this website that maintains a list of current crowdfunding sites. New sites are popping up daily, so be sure to check the list periodically.
Some sites have estimated that there may be around 1,000 crowdfunding sites available by the time the SEC releases their regulations.
Of course, these estimates usually combine all the Peer-to-peer sites, lending sites, equity sites, donation sites, and non-profit sites that are coming online.
Have any of you tried crowdfunding? What was your experience like?