Equity-based crowdfunding is an innovative approach to promote growth in small businesses and educate the financially less sophisticated about investing. This Note discusses and analyzes the four different types of equity-based crowdfunding under the federal and state securities laws. By examining the strengths and weaknesses of current crowdfunding rules, businesses can decide which exemption is most suitable to their capital needs. This Note intends to spread awareness about equity-based crowdfunding to the general public by offering general assessments of the industry, traditional financing methods, and financing alternatives for small businesses and startups.

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