US businesses have raised more than $5 million through equity crowdfunding, just three months after a change in the law opened up the investment process to allow anyone to participate.
Title III of the US Jobs Act came into effect on May 16th, allowing anyone – not just accredited investors – to invest in start-up businesses through equity crowdfunding. Previously, ordinary Americans were limited to Kickstarter campaigns unless they had the $1 million net worth allowing them to become ‘accredited investors’. Since then, the amount raised through equity crowdfunding has hit $5 million, making it easier and simpler for start-up businesses to gain capital and allowing the entire population access to the same investment opportunities as those with significant wealth.
Aubrey Chernick, founder of NextGen Crowdfunding, said: “this new era of crowdfunding is creating powerful opportunities for both investors and startups.”
Companies hitting their minimum goals include Beerfit, an endurance event company ($27,912), Hawaiian Ola Brewing Crop, a drink company helping sustainable farmers ($100,000) and Legian M Entertainment, a fan-owned entertainment company.
12/08/2016
