It might cost you $39K to crowdfund $100K under the SEC’s new rules
Found on Venture Beat on Sunday, 05 January 2014
On October 23, 2013 the Securities and Exchange Commission (SEC) issued the proposed rules for Regulation Crowdfunding.
For raises under $100,000, the SEC estimates portal and compliance fees will eat up between 12.9% and 39% of the money raised.
If you are looking to raise money via crowdfunding, the moral of the story is, try to raise as close to the next threshold as possible.
Good thing that entrepreneurs can decide to start their business somewhere else on the globe where the SEC doesn't steal the investments of those who fund a new idea.