Why is crowdfunding a legitimate way to raise capital?

  1. Home
  2. Knowledge Base
  3. Crowdfunding and extra information
  4. Why is crowdfunding a legitimate way to raise capital?

Why is crowdfunding a legitimate way to raise capital?

Three key areas have helped drive this growth in the crowdfunding industry:

  • Technology: Investment software is more available and cost-effective than ever. Today, there is a plethora of investment software and service providers that make it relatively easy for issuers to get set up.
  • Compliance and Legal: The JOBS Act, signed into law in 2012, allowed non-accredited investors to invest in startups and mini-IPOs. Essentially, the CF and Reg A offerings. This blew the doors open for companies and very early adopters.
  • Retail Investor Demand: There is enormous demand from retail investors. Retail investors want access to more options with which to diversify their portfolios.
Was this article helpful?

Related Articles