"Online equity crowdfunding allows investors to tap into the collective 'wisdom of the crowd' and allows businesses to reach a lot more people over the Internet," Secretary of Banking and Securities Wiessmann said. "Investors need to keep in mind that all investments have risk, especially small business and start-ups."
Wiessmann urges investors to pay close attention to a company's finances, its timelines and strategies, capitalization, and experience and skills of management.
"While crowdfunding opens new capital raising opportunities, investors should perform due diligence on investment opportunities they learn about over the Internet," Wiessmann continued. "When you see an offering on the Internet — whether on a funding portal, in an online newsletter, message board or chat room — you should investigate before you invest."
The department will be sharing information on crowdfunding and equity crowdfunding for the next week on Facebook and Twitter.
Members of the public can contact the Department of Banking and Securities consumer helpline (1-800-PA-BANKS) to file a complaint or ask questions about financial products, transactions, or companies. Consumers and businesses can learn more at www.dobs.pa.gov, and are also invited to connect to the department's outreach efforts by following us on Facebook and Twitter or subscribing to the department's newsletter.
Media contact: Ed Novak, 717-783-4721
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pennsylvania-secretary-wiessmann-advises-investors-to-be-well-informed-on-equity-crowdfunding-300301026.html
SOURCE Pennsylvania Department of Banking and Securities