Crowdfunding

What is crowd-sourced funding? Crowd-sourced funding (CSF) allows companies to raise funds through an online intermediary, from a large number of investors without the need to comply with capital raising and governance requirements imposed on public companies.  Problem solved by crowd-sourced funding Crowd-sourced funding laws were developed to assist smaller companies in accessing capital from investors in a more cost effective way.   In the past, private companies had to rely on raising funds from high net worth individuals, venture capitalist and angel investors. There was also capacity to raise funds under a small scale '20/12/2 rule’ which is limited to $2 million from 20 investors over a 12 month period. This exemption still exist, but before these reforms were in place the situation...