The concept of crowdfunding is relatively new in the business world but it has definitely taken off quickly. Thanks to sites like IndieGoGo and Kickstarter millions of entrepreneurs are receiving the money they need to get their small businesses really rolling and now the SEC has ruled on how the process will legally work. Currently most crowdfunding sites simply provide the supporters with a small reward, such as a product, for their contribution but many companies are hoping that they’ll be able to provide actual stock or a share in the company.
Thanks to today’s SEC ruling these companies will now legally be able to provide supporters with a share of the company, if they desire. This is good news because it will help spur on the crowdfunding concept much more rapidly and it will definitely help build hundreds of thousands of new small companies that will create jobs and improve the work force in many ways. As a whole this is absolutely great news for everyone and millions of entrepreneurs are surely very happy about the ruling. The new rules will go into effect soon and the various crowdfunding sites will likely follow the new process very shortly thereafter.