Shaping Crowdfunding 2.0

The U.S. Securities and Exchange Commission has the delicate task of writing guidelines for the next generation of crowdfunding, so that investors are protected and yet preserving its benefits to companies seeking to raise money.

Crowdfunding has been mostly restricted to artists and business owners accepting small donations in exchange for things like tote bags and CDs. But the JOBS Act, signed last month, will let entrepreneurs sell pieces of their business (equity) to non-accredited investors via crowdfunding script. The SEC is expected to release its guidelines early next year.

The crowdfunding industry has its own recommendations for keeping investors safe without handicapping entrepreneurs. Here's a wish-list from RocketHub, a crowdfunding platform which counts small-business owners as its fastest-growing group of customers and plans to roll out an equity-based product in 2013 (contingent on the final SEC regulations).

Read more: http://www.entrepreneur.com/blog/223551