Crowdfunding is a new concept that started in the last 10 years. You see hundreds of websites where a company that hasn’t yet made their product or develop their service goes online and people come in to either buy their product or to support their service without getting any ownership of the company. The securities laws don’t apply, but the FTC laws might apply. You’re able to raise money if you have a good enough project. The real issue is if your product or service is in a position where you can attract that kind of capital and if crowdfunding is the appropriate thing to do. There are limitations on the amount of capital you can raise and there are lots of rules you are going to have to follow.
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