Expert Q&A on Equity Crowdfunding with Sara Hanks will appear in the October 2015 edition of Thomson Rueters Practical Law
The proliferation of social media and the liberalization of the securities laws have given rise to an increasing use of equity crowdfunding offerings to raise capital. These offerings are made over the internet to a large group of people, with each investor investing a relatively small amount. For a startup company, crowdfunding can provide additional capital to supplement what the company can raise from its network of friends and family and can also offer an alternative to working with professional investors. Practical Law asked Sara Hanks of CrowdCheck, Inc. to weigh in on trends in equity crowdfunding and key issues for companies considering a crowdfunding offering.