If you’re looking for a business idea that will put you onto the ground floor of an emerging industry, this could be it. As of writing, equity crowdfunding is just starting to become legal across the country.
A crowdfunding portal facilitates investing in businesses by listing investment opportunities and managing the ensuing investment transactions.
-funding portals operated by persons relying on the start-up registration exemption, and
-funding portals operated by registered dealer.
A registered funding portal is prohibited from:
-Offering investment advice or recommendations;
-Soliciting purchases, sales or offers to buy the securities displayed on its platform;
-Compensating employees, agents, or other persons for such solicitation or based on the sale of securities displayed or referenced on its platform; -Holding, managing, possessing, or handling investor funds or securities.