Will New SEC Rules Imperil Crowdfunding?

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.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.