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No, from what I understand there are no changes to the rules about investors needing to be accredited (http://www.sec.gov/answers/accred.htm http://www.sec.gov/
by bps4484 14y ago
No, from what I understand there are no changes to the rules about investors needing to be accredited (http://www.sec.gov/answers/accred.htm http://www.sec.gov/answers/accred.htm) which prevents the general public from investing.
This would just allow startups to publicly state "I want investment" instead of saying "I have this awesome startup [wink wink]" and waiting for an investor to say "would you like investment?".
- pash 14y agoThat's wrong. The crowdfunding exemption of the JOBS Act is precisely an exemption to the rules that restrict investment in start-ups (really in any company not registered with the SEC) to accredited investors. There will still be restrictions—for example, only companies raising $1MM or less qualify, and nobody can invest more than a certain fraction of their annual income. See Title III, Sec. 302 of the act [0] for details. 0. http://www.gpo.gov/fdsys/pkg/BILLS-112hr3606enr/pdf/BILLS-112hr3606enr.pdf http://www.gpo.gov/fdsys/pkg/BILLS-112hr3606enr/pdf/BILLS-11... [PDF]
- bps4484 14y agogood to know, thanks for the correction.
- rprasad 14y agoAlso see http://www.sec.gov/divisions/marketreg/tmjobsact-crowdfundingintermediariesfaq.htm http://www.sec.gov/divisions/marketreg/tmjobsact-crowdfundin... for an FAQ explaining the crowdfunding provisions of the law. But also note that crowdfunding is not yet legal. There were certain enabling regulations that needed to be passed to make it possible for crowdfunding platforms to operate which have not yet been issued. See, e.g., http://venturebeat.com/2012/08/21/congressman-secs-foot-dragging-is-killing-crowdfunding-promise/ http://venturebeat.com/2012/08/21/congressman-secs-foot-drag... (posted today!).