U.S. regulators are tied up in knots trying to figure out how to write the laws for equity crowdfunding to prevent fraud. Perhaps they ought to take a page from the Dutch. In the Netherlands, equity crowdfunding from unaccredited investors has been legal for the better part of three years. “The Netherlands are really a frontrunner in equity-based crowdfunding,” Korstiaan Zandvliet, the co-founder of Symbid, said at the Massolution crowdsourcing conference in New York City last week. Korstiaan Zandvliet is the co-founder of equity crowdfunding platform Symbid.com, which has funded 23 startups with more than 2 million euros. Image credit: Symbid.com Symbid is an equity-crowdfunding platform headquartered in the Netherlands that has been in existence since 2011. The platform has funded 23 startups, raising more than 2 million euros ($2.7 million) from over 15,000 unaccredited investors, according to Zandvliet. “We tend to have a bit of experience,” he says. Equity crowdfunding is when a company raises capital by selling small pieces of equity to a large number of investors. This differs from donation-based crowdfunding – made popular by sites like Kickstarter and Indiegogo — whereby a company collects small donations from a large number of people and, in exchange, gives […]
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