The term Crowdfunding has many different connotations. Crowdfunding includes a wide variety of collective efforts and allows people to raise funds for almost any type of project with donations from others. Crowdfunding also refers to funding a company by selling small amounts of equity to a large number of investors; this more narrow definition is what we are addressing in this FAQ.
DISCLAIMER: The adoption of the JOBS Act has raised many questions and issues related to Crowdfunding; these Frequently Asked Questions (FAQs) are intended to provide clarification. The information below does not take the place of legal advice. To protect against undesired and unintended consequences, one should consult with competent legal advisors.