SMALL BUSINESS

4 Crowdfunding Cautions For Small Businesses

03/29/2012 10:24 am 10:24:35 | Updated May 29, 2012

Small companies will soon have a new option to obtain financing through crowdfunding, but there are some cautions to consider.

The so-called crowdfunding term essentially means pooling resources or money together from a group. Under the Jumpstart Our Business Startups Act, or JOBS Act, small companies will have the ability to raise up to $1 million in equity on an annual basis through crowdfunding, without having to go through the rigorous disclosure process by the Securities and Exchange Commission.

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