Crowdfunding and Securities Law

The video tutorial explains the process and regulations of equity crowdfunding, allowing early-stage ventures to seek public investment without traditional registration. It covers the statutory authorization under Section 4A6, investor qualifications, and portal requirements. The tutorial highlights the benefits of crowdfunding for startups, enabling broader participation in early-stage investments.

What is the primary advantage of equity crowdfunding for early-stage ventures?

• Reducing operational costs

• Avoiding traditional registration processes

• Receiving government grants

• Accessing bank loans

Under Section 4A6, what is the maximum amount a company can raise through equity crowdfunding?

• $500,000

• $5,000,000

• $1,000,000

• $2,000,000

If an investor earns less than $100,000 annually, what is the maximum they can invest in equity crowdfunding?

• $5,000 or 10% of their income

• $2,000 or 5% of their income

• $1,000 or 2% of their income

• $10,000 or 15% of their income

What is a key requirement for a portal to qualify in handling crowdfunding transactions?

• Providing investment advice

• Implementing fraud protections

• Offering tax benefits

• Guaranteeing investment returns

How does equity crowdfunding benefit startup ventures?

• By ensuring high returns

• By limiting investor participation

• By reducing competition

• By attracting a wider range of investors