Articles

Crowdfunding Offers Attractive Financing Alternative, But SEC Must Give More Clarity

Thomson Reuters

Due to the financial crisis and prolonged economic downturn, the credit market has contracted considerably. In this cautious investment climate, a start-up company’s ability to secure seed financing from venture-capital firms and angel investors that have scaled back lending to many yet-unproven, entrepreneurial endeavors, has become increasingly difficult. One form of financing has seen exponential growth over the past few years to help these companies surmount its hurdles: crowdfunding.

Originally published by Thomson Reuters, reposted with permission.