Mom and pop crowdfunding for startups is about to become a reality

Courtesy of Flickr

Courtesy of Flickr

Mom and pop crowdfunding for startups is about to become a reality.

That’s good news, but it also comes with a lot of red flags.

On Friday, the Securities and Exchange Commission is expected to issue a final rule regarding Title III of the JOBS Act. This will allow small companies to directly raise debt or equity capital from friends, family, and interested investors.

The SEC has taken three years to consider what they are doing, and with good reason.

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