SAN FRANCISCO — Regulators on Monday made it easier for small businesses to sell stakes in their companies and get the money they raise that way faster during the economic crisis caused by the coronavirus pandemic.
The move by the U.S. Securities and Exchange Commission comes as operators of such equity crowdfunding say they are already working with record amounts of companies who are pushing the total raised to all-time highs.
"This is going to be a big help," Jonny Price, fundraising director at Wefunder Inc., told the Business Journal. "I don't think this is going to 10X the number of startups doing regulation crowdfunding, but it expedites the launch of campaigns, and it helps founders access the money they raise quickly."
San Francisco-based Wefunder's platform did $2 million in regulation crowdfunding — as that variety of crowdfunding is known — last week for the first time in its history, Price said. That capped a 35% growth in investment volume over the past two months.
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