New businesses will soon be able to raise raise money online and give investors a stake in the company.
The Securities and Exchange Commission just approved a proposal that would allow startups and small businesses to solicit relatively small sums of money on the web.
The rule would allow entrepreneurs to raise up to $1 million a year from investors. Critics say this sort of crowdfunding does not protect investors – or companies.
- Marty Schenker, executive editor of Top News for Bloomberg. He tweets @mschenker.