What is equity crowdfunding and how does it work?

Slava Rubin / November, 2017


Slava Rubin, Co-Founder of Indiegogo explains how equity crowdfunding works.

Video Transcript

What is equity crowdfunding and how does it work?

Equity crowdfunding is a brand new concept. Ever since the Securities Act of 1933 no longer can an individual common person who’s not rich be able to invest in their neighbors or random strangers ideas, unless these ideas were publicly registered through the SEC so like an IPO like Facebook now on the public markets. But since 2012 there was a jobs act which was signed by President Obama and soon title 3 which is a portion of the jobs act will go live in May 2016. For the first time in 90 years, a common person will be able to invest into any small idea, like a pizza shop or a drone or some coffee shop, without having to have all the legality and all the compliance and all the issues associated with the previous Securities Act of 1933. It’s super exciting it really opens up a lot more access to capital for all the various entrepreneurs around America.



Next Up

Is crowdfunding a good way to get funding and start your business?

What criteria determines the valuation of my startup?

What is best practice when pitching for a late stage funding?

What is bootstrapping and how can I bootstrap my startup?

What are the entrepreneurial traits you look for in founders?

Join the Startupedia Community

Connect with VCs and unlock vital startup advice!