Crowd funding has been a fantastic boon to entrepreneurs looking for investment to take their projects to the next level. Literally millions of entrepreneurs have obtained funding. But now it is about to change dramatically with the law allowing direct investment in startup businesses. The new law allows startups to market private share offerings to potential investors by websites, social media, print and television. The ability to be able to pitch to a much wider range of investors should help startups get more funding faster.
At the moment only accredited investors, they are people with more than $200,000 in annual income or a minimum of $1 million in net worth are eligible to fund startups. However, from 2014 startup funding will be open to all, however, non-accredited investors who earn less than $100,000 will be only able to spend 5% of their income and equity crowd funding. The crowd funding sector is expected to generate more than $5 billion each year and we can expect that to increase dramatically in 2014 and beyond.