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That'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
by pash 14y ago
That'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!).