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New Regulation Allows for Crowdfunding of Equity


According to a new SEC regulation, companies can now secure funding through crowdfunding. Recently introduced SEC Regulation A+ provides very specific laws and standards that companies must follow before securing funding. The new regulation will allow companies to test the waters of an equity sale with a Kickstater-like campaign after a round of due diligence with a securities attorney. Potential investors will be allowed to express interest without actually purchasing the securities. The companies can then sell the securities to the potential investors using a licensed broker. [TECH]