Now anyone can become a VC with IndieGoGo’s new ‘Equity Crowdfunding’ platform

Much has changed inside the universe of investing for individuals whose income is $100,000 or less. In late 2015, the Securities and Exchange Commission (SEC) embraced rules that permit the offer and sale of securities through crowdfunding, and small investors are currently allowed to invest through crowdfunding.

IndieGoGo, crowdfunding portal, has propelled a new equity based crowdfunding service allowing anyone to invest in new businesses and developing companies.

What is Equity Crowdfunding?

Equity crowdfunding is the process where individuals (i.e. the 'group') invest in an early-stage unlisted company (a company that is not listed on a stock market) in exchange for shares in that company. A shareholder has partial responsibility for company and stands to profit ought to the company do well. The inverse is additionally true, so if the company fails investors can lose a few, or all, of their investment.

The Gray subtle elements

New companies that made their name on Indiegogo would need to abandon their initial investors to pursue set up institutional backers.

"Since Indiegogo first launched we’ve wanted to offer these sort of investments," Indiegogo CEO David Mandelbrot said in a statement. "We’re very excited to be officially giving the millions of people who visit our platform every month the chance to get involved with equity crowdfunding opportunities."

Indiegogo is joining forces with the online investment platform Microventures, which will handle the logistics of every transaction.