Securities Arbitration Lawyers BlogCrowdfunding and Securities: What You Need to Know to Stay Protected
Crowdfunding, like any investment, has both risks and benefits. Before investing, make sure you understand both.
As of May 2016, investors are able to buy stock in early-stage companies through crowdfunding, a system in which companies raise small amounts of money through many people, typically on internet-based platforms.
To many, crowdfunding sounds like an exciting new way to invest, but it’s important to understand the type of business you’re investing in: what it does, how it makes money, and the inherent risks in investing in start-ups and other early stage ventures.