Equity Crowdfunding for Investors ─ A Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms

Equity crowdfunding is a new, exciting, and evolving way for growing businesses to raise capital and for average investors to buy equity in those businesses. It has been universally hailed as a “game changer” in the private capital markets, particularly the venture capital asset class, which includes angel investing. Before now, venture capital investing—and the spectacular returns that are possible in this asset class—have been off-limits to all but the wealthiest Americans. In addition to potentially huge returns is the excitement of being involved in helping startups and fast-growth companies succeed (although many will fail), and thereby gaining early access to leading-edge technology and innovative business models.
Readers will learn:

• the reasons for and against investing in equity crowdfunding
• how to follow the rules and limits established by the SEC
• how to make smart investment decisions based on their personal objectives and financial situation
• how to avoid being ripped off by shoddy websites and fraudulent offerings, and
• how to find the best advice and information available.

DAVID M. FREEDMAN has worked as a financial and legal journalist since 1978. He has served on the editorial staff ofThe Value Examiner since 2005. He is coauthor of the 1987 book Death of an American, about theSinger v. Wadman civil rights lawsuit in Salt Lake City.

MATTHEW R. NUTTING practices corporate law with the firm Coleman & Horowitt in Fresno, CA, where he advises on all facets of business law, including a special emphasis in rewards-based and securities-based crowdfunding. He is a director of the National Crowdfunding Association and served as its National Legal Affairs Director. He is also the cofounder of CrowdPassage.