Securities and Exchange Commission rules that took effect Monday will make it easier for companies like Cambridge’s Wefunder Inc. to provide an online platform for start-ups to raise money.
The SEC revised regulations for the first time to allow private companies to publicly solicit for investment dollars in exchange for equity, a major shift in the way fledgling businesses have traditionally been allowed to seek early-stage funding. It means start-ups can now use crowdfunding websites such as Wefunder to raise money.
The change is part of a broader overhaul of securities law as a result of the 2012 Jumpstart Our Business Startups Act, or JOBS, a federal law intended to give entrepreneurs the ability to cast a wider net when seeking money, and give people other than professional investors or bankers the chance to invest in start-ups. Full story for BostonGlobe.com subscribers.
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