Indiegogo Starts Offering Equity Crowdfunding (At a Price)

One of the biggest rewards crowdfunding web platforms will now permit non-accredited investors to buy equity in startups posted on its site.

Indiegogo, which until today, permitted its entrepreneurs to return only products and swag, will now let them offer stock or debt to the investing public.

The Securities and Exchange Commission notes that in less than 6 months since Regulation Crowd Funding has been effective, 140 companies have raised an average of $348,816 from the public.

Raising money on Indiegogo won’t be cheap:companies will have to pay about $7,000 on compliance and regulatory costs, pay Indiegogo a cash fee of 7% on any funds raised, plus 2% in stock.Investors will pay a $7 processing fee or 2% of their investment, whichever is higher.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, Broker dealers, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.