On July 13, 2007, the Brazilian Securities and Exchange Commission (CVM) published CVM Instruction 588 (“Instruction 588” or “IN588”), which regulates investment-based crowdfunding through digital platforms (also known as investment crowdfunding). This is great news for small and medium-sized businesses, as they have started to have an innovative financing alternative.
In order to promote business in this new important sector, Baptista Luz Advogados has set out to produce sumarized guildines for entrepreneurs wishing to create an investment-based crowdfunding platform, as well as for those wishing to capture or invest through it. In the links below, we briefly outline the requirements, obligations and rights of each of these participants. Click here for more information: