Regulation Crowdfunding

Regulation Crowdfunding is a legal framework in the United States that allows small businesses to raise funds from a large number of investors through online platforms. Established by the SEC in 2016, it enables companies to offer shares or ownership stakes to everyday investors, not just wealthy individuals. This approach democratizes investment opportunities and helps startups access capital while providing investors with potential returns. However, there are limits on the amount an individual can invest based on their income and net worth, offering some protection against investment risks.