By Omar Sacirbey
New federal rules allowing small businesses to tap ordinary folks will give upstart marijuana companies a sorely needed alternative to traditional sources of financing such as angel investors and venture capitalists.
The Securities and Exchange Commission’s new rules tied to crowdfunding could create a tidal wave of fresh financing in the cannabis industry.
The rules, which took effect Monday, permit individuals to put $2,000 or more per year – the allowable amount is based on annual income and net worth – into a small company in exchange for a stake in the business.
Companies can now raise up
Crowdfunding Now Viable Financing Option for Cannabis Companies