equity crowdfunding regulations

Equity crowdfunding allows individuals to invest in early-stage companies via online platforms, receiving ownership shares in return. Regulations ensure this process is transparent and fair, setting limits on how much investors can contribute based on their income and net worth. Platforms must register with authorities, verify investors’ identities, and disclose important company information to protect investors from fraud and misrepresentation. These rules balance enabling startups to raise capital while safeguarding less-experienced investors, fostering innovation and economic growth within a controlled legal framework.