If you’re a tech enthusiast interested in options for supporting startups, you might be trying to discern the difference between Kickstarter or Indiegogo and equity crowdfunding. Traditional equity crowdfunding sites facilitate the ability for “backers” to donate money to campaigns in exchange for perks, like sample products or tee shirts. Platforms using Regulation CF facilitate the sale of a form of equity in private companies to investors.
Thanks to the current tech boom, the world is full of aspiring entrepreneurs looking to start the next Uber. And to do so they need capital. That’s where 506(c) comes in.