Equity Crowdfunding: 5 Things to Know About the Future of Raising Money

Here’s one: The perk-based crowdfunding you already know and love isn’t going anywhere Crowdfunding sites can now solicit select wealthy individuals to invest in their movies and pursue profits rather than trinkets and perks. Though this is a major development, the evolution of film financing is far from over. Title II of the JOBS Act went into effect late last month, allowing open solicitation of monies, but it will be several more months before the Securities and Exchange Commission approves regulations for Title III of the bill. This provision, passed last year, allows anybody — not just accredited investors — to actually invest in a product pitch, not just donate to it. Indiegogo — a major crowdfunding platform that pioneered the practice — is waiting for Title III to go into effect before making any changes to its business model. Still, plenty of eager businessmen have jumped at the opportunity to serve as an intermediary between aspiring entrepreneurs and the millions of accredited investors living in the United States. Here are five things you should know about the future of crowdfunding. 1. Be wary of brokers asking for your money. Kickstarter and Indiegogo are household names thanks to their role in shepherding the crowdfunding revolution, yet […]

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