The Securities and Exchange Commission (SEC) released a crowdfunding rules proposal in late October, setting the stage for regulations that may make it more difficult for startups to crowdfund capital.
Under the new rules, a company that raises $100,000 via a crowdfunding platform may pay as much as 39% of that amount in fees and compliance costs, according to an analysis published by VentureBeat.
“For raises under $100,000, the SEC estimates portal and compliance fees will eat up between 12.9% and 39% of the money raised. For raises over $100,000 but less than $500,000, that figure may drop down to 7.96%. And for raises over $500,000 but under $1 million, it may drop to 7.66%,” Sherwood Neiss of Crowdfund Capital Advisors wrote in the piece.
To learn more about the potential impact of the SEC regulation on crowdfunding, read the full story by clicking here.
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