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Crowdfunding - one of the fastest growing areas on the Internet

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Crowdfunding has been one of the fastest growing areas on the Internet. A search for the term on Google results in 364 million results. During 2012, a multitude of crowdfunding sites raised more than $3 billion for charitable causes, community projects, personal needs and businesses.

Additional Information:

Company: InvestmentPitch
Website: http://www.investmentpitch.com/
Date Published: Oct 30, 2013
Transcript: Available

Video Transcript:

I’m Lesley Mapstone for Investmentpitch.com

Crowdfunding has been one of the fastest growing areas on the Internet. A search for the term on Google results in 364 million results.

During 2012, a multitude of crowdfunding sites raised more than $3 billion for charitable causes, community projects, personal needs and businesses.

This year, the number is expected to exceed $5 billion.

Of course, with all this money and attention, it was only a matter of time before Donald Trump got involved.

Donald Trump is offering a $1 million reward to the first person who uses FundAnything (logo) to break the all-time crowdfunding record set by Pebble Watch.

Trump, along with Bill Zanker are co-founders of FundAnything.
“If you have a great idea, FundAnything is one of the best ways to raise money that I’ve ever seen” stated Trump. “So I’m giving away $1 million to the first person who raises more than the $10,181,000 that Pebble Watch raised on Kickstarter.”

The question on everyone’s mind, ”Can I use crowdsourcing to raise equity for my company?”

The U.S. Securities and Exchange Commission recently issued its long-awaited rules that would allow equity crowdfunding under certain conditions.

The proposed rules, which are under a 90-day comment period, involves new regulations designed to govern crowdfunding which is becoming even more popular since the introduction of the JOBS Act, which is expected to stimulate capital raising.

The proposed legislation would limit issuers to raising US$1 million in a 12-month period.

It would also restrict the amounts investors could risk.

If an investor’s annual income or net worth is less than US$100,000, the limit is US$2,000, or 5% of annual income or net worth.

If the annual income or net worth is more than US$100,000, the limit is 10% of annual income or net worth, up to US$100,000.

In Canada, the security regulators are looking at the potential problems, with Saskatchewan the first to propose a new exemption.

I’m Lesley Mapstone for Investmentpitch.com
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This video is for information purposes only and it not a recommendation to buy or sell any securities.