Investing in Startups Is Opening Up to the '99 Percent'

Senior Entrepreneurship Writer at CNBC
2 min read

Crowdfunding allows entrepreneurs to circumvent the institutions of finance to raise money to fund their dreams. It is a democratization of the fundraising process. As of May 16, crowdfunding is becoming more democratic on the investor side, too.

Equity crowdfunding, in which entrepreneurs raise cash by selling a piece of their company, has historically only been open to accredited investors, or those investors who meet certain levels of wealth. In this second episode of Crowdfund with Cat, Alon Hillel-Tuch, a co-founder of the crowdfunding platform RocketHub, explains that as of May 16, a law change will mean that everyone can potentially be an investor in equity crowdfunding. Anyone with the cash and the interest will be able to invest in startups.

Hillel-Tuch walks us through what the change means and how it will affect the startup finance landscape.  

RocketHub was acquired by entrepreneurship resource center EFactor a year ago. Since then, Hillel-Tuch has left and is now a partner at the venture building group, Stacked VB.

For more on the rule change and how entrepreneurs and investors should prepare, check out our series of written stories on equity crowdfunding (linked to below).

Starting May 16, Entrepreneurs Can Raise Money in a Whole New Way. Here's What You Need to Know.

An Entrepreneur's Essential Guide to the New Wild West of Funding Opening on May 16

Your Guide to the High-Risk, High-Reward World of Investing in Startups When Fundamental Finance Law Changes Go Into Effect May 16

Which Entrepreneurs Will Benefit Most From the New Era of Crowdfunding?

Next Generation Crowdfunding Starts May 16. Expect Opportunity and Growing Pains.

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