The Securities and Exchange Commission has revealed plans to make it easier for smaller firms to access funds.
According to a Bloomberg report on Wednesday, the Director General of SEC, Emomotimi Agama, said this in an interview.
The SEC boss described crowdfunding as an online money-raising strategy that began as a way for the public to donate small amounts of money, often through social networking websites, to help artists, musicians, filmmakers and other creative people finance their projects.
According to Agama, the concept has recently been promoted as a way of assisting small businesses and start-ups looking for investment capital to help get their business ventures off the ground.
The regulations for the registration and operation of crowdfunding platforms and intermediaries released in 2021 by the regulator detail the regulatory framework by which companies could raise debt or equity capital through crowdfunding, as well as the eligibility criteria and obligations of issuers, crowdfunding portals and crowdfunding intermediaries.
