Raise Startup Money with Ownership Crowdfunding

Until now, your fans have been able to use a crowdfunding site like Kickstarter or Indiegogo to help your business, but you could only give them rewards—you could not share ownership in your company with them. That is changing.

Recent changes in federal law have authorized startups to share ownership with those who participate in a crowdfunding campaign. Ownership crowdfunding allows business owners to share a percentage of the business with those who invest money to help the business grow. This allows you, as a business owner, to share profits with grassroots supporters who help your business idea come to life.

Entrepreneurs with great ideas have long struggled to raise the money needed to build a company. That is changing with ownership crowdfunding, where people who support your idea can invest in your company and share in the profits.

As the U.S. Securities and Exchange Commission prepares the rules, you can begin working on your business plan. To begin preparing your company for ownership crowdfunding, contact attorney Aaron Hall. Best practices include using ownership crowdfunding to raise funds from strategic partners, potential major customers, and other major players in your space. Legal fees can be paid by your crowdfunding, so you can avoid paying fees until you have raised funds.

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SEC Issues Ownership Crowdfunding Rules