Startup Guides > SEC And Crowdfunding: Things You Need To Know.

9 Ways the New SEC Crowdfunding Rules Will Affect Your Business

The SEC adopted new crowdfunding rules in late 2015. The following information will help you learn all about the important changes, and what it means to you.

The new SEC crowdfunding rules could be a game-changer for your business, but there's a lot work to be done on your end before you can reap the benefits.

Following these 9 tips will help you understand the new regulations little better:

1. Increased Brand Loyalty
The new crowdfunding rules will tap directly into the hearts of consumers. It's no secret that brands can earn emotional capital from its customers. This is going to take that to the next level. For example, if you use a lot of batteries, which brand are you going to buy - Duracell or the ones you own a little stock in?

2. Access to Capital with Relaxed Regulatory Requirements
Startups can now access capital markets (to raise up to $1M annually) that used to be only available to public companies, and they can do this without filing audited financials which are expensive for small businesses. Under the new SEC rules, companies that raise less than $500,000 will only need to provide financial statements certified by their own financial officers. Companies that raise more than $500,000 (for the first time) will need to get their financial statements reviewed by an outside accounting firm but are not required to provide audited financials...