Mass. to offer investors advice on ‘crowdfunding’
WASHINGTON (AP) — Massachusetts Secretary of State William Galvin is offering training to investors in anticipation of new federal rules on so-called “crowdfunding.”
In July, Galvin formed a new investigative unit to monitor crowdfunding websites that use the Internet to solicit a large number of smaller investors.
The watch group, called I-Crowd, released a brochure on Monday that Galvin says provides tips for those considering making investments through crowdfunding.
The secretary said while he considers such investments risky, he wants to make sure investors have as much information as possible.
The U.S. Securities and Exchange Commission is developing regulations for crowdfunding after Congress approved a law last year that would allow startup companies to raise capital through the Internet.