How to Secure Crowdfunding for Your Company

May 15, 2012 12:00 AM

" Recently I got the opportunity to speak with Candace Klein, one of the contributors to the legislation in the JOBS Act, which created the opportunity for equity-based crowdfunding. Klein is an attorney at Ulmer & Berne LLP and the founder of SoMoLend, a web-based company that connects entrepreneurs with investors.

If you're the owner of a small- to medium-sized business of any kind, then you should be aware what a huge opportunity for capital is about to be available. [There's also a greater opportunity to be exposed to fraud, so please also read an interview Inc. Well also did recently on that subject.—ed.] Candace shared some critical information about what any entrepreneur needs to know about crowdfunding.

How does someone obtain crowdfunding?

Candace Klein: Crowdfunding must take place through an intermediary, either a "funding portal" or a "broker." The business must provide [their] name, legal status, physical/web address, names of directors, officers and 20 percent owners, business description and a description of purpose of offering and intended use of proceeds. You also have to submit financial information of the company and the owners "

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