For those of you not on the Crowdfunding up and up, today is a big day. Today, the SEC will be voting to finalize the proposed rules for Title III of the JOBS (Jumpstart Our Business Startups) Act. In short, today is the day where the Crowdfunding industry’s dreams in America will hopefully be realized. Here are the top 3 proposed updates:
- Companies can raise up to $1 million dollars over the course of one year
- Non-accredited investors can invest up to $2,000 dollars or 5% of their net worth
- This is massive! Previously, Crowdfunding was not very open to the “crowd” or the majority of us
- Securities from a Crowdfunding investment cannot be resold for one year
Interestingly enough, the audit requirement seems to be missing, which would be huge. Previously, an investor had to be audited to qualify as an accredited investor for each investment that they made; this was not only a big time sink, but was also financially inefficient.
The SEC began its meeting today at 10:00 am EDT; see the opening statement here and read the Crowdfunding Proposed Changes Fact Sheet below for more information.