INDIANAPOLIS - Indiana Secretary of State Connie Lawson has announced rules for crowdfunding in Indiana.
Lawson says the rules announced Tuesday will allow Indiana entrepreneurs to raise up to $2 million through crowdfunding and Indiana investors to invest up to $5,000 per opportunity.
Crowdfunding is a method of raising money from a large number of people, usually online. Using crowdfunding to find investors has been illegal in the U.S. because of laws that were designed to protect the public from scams or bad investments. The Securities and Exchange Commission is working on crowdfunding rules.
Indiana Securities Commissioner Carol Mihalik says crowdfunding has potential to be a great capital formation tool for startup businesses, but says Indiana residents need to be aware of the risks before they invest.
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