By Kendall Almerico Chief Executive Officer at BankRoll Ventures The SEC has released rules for Title III of the JOBS Act giving us guidance as to how equity crowdfunding will be legalized. Nearly 3 years and 7 months after the game-changing law was signed by the President, the use of equity crowdfunding will be available to startups and small companies in 180 days. And yes, the SEC did make the law workable for most startups and small businesses, despite critics believing it could not be done. With equity crowdfunding, a company can raise up to $1,000,000 online on new equity crowdfunding portals from anyone in the general public. If a company wants to raise more, there is always equity crowdfunding’s sister, a Regulation A+ Mini-IPO to consider. Under the final rules just passed, members of the “crowd” are limited in what they can invest, as part of the SEC’s attempts to protect investors. The law limits investors to (a) the greater of $2,000 or 5 percent of the lesser of their annual income or net worth, if either the annual income or the net worth of the investor is less than $100,000 and (b) 10 percent of the lesser of their annual income or net worth, if […]
SEC Finally Releases Rules For Equity Crowdfunding : CrowdFund Beat .