Crowdfunding is a form of alternative finance, which has emerged outside of the traditional financial system. Usually, funds are raised through websites like Kick-Starter, where someone proposes a project and invites individuals to help fund it.
As for the recent developments, Governor Chris Christie signed NJBIA-backed legislation earlier this month that changes New Jersey laws and regulations so companies that want to offer intrastate crowdfunding investment opportunities no longer have to register with the NJ Bureau of Securities.
Also, at the end of October, the federal Securities and Exchange Commission amended its rulesto allow anyone with a net worth of less than $100,000 to invest up to $2,000, or up to 5 percent of their annual income or net worth, in equity offerings of up to $1 million over the course of a year. Until now, investors had to have incomes of over $200,000 in each of the previous two years or a net worth of at least $1 million.