Equity rewards to energize financing options for startups

The other day a friend of mine asked me whether I knew anything about equity-based crowd-financing and how it works. Her question was certainly interesting, considering that equity-based crowd-funding was a relatively new and innovative financial tool designed to help startups and small businesses.

My friend's reasons for gaining more knowledge about the sector were genuine, considering that she had recently received a job offer from an equity-based crowd-funding company. My friend was at a crossroads of sorts as she was considering a job change after working for 12 years as the news editor of a local television station. " I need to know if the equity-based financing business is legal before I take a final decision," she said.

Her concern about the legal status sounds reasonable, as I am still one of the increasing number of people who still cannot tell the difference between illegal fund-raising and equity-based crowd-funding, with Internet fundraising business booming in some key cities like Beijing, Shanghai, Guangzhou and Shenzhen less than a year ago.