Will the SEC finally allow anyone to kick in to crowdfunding?
Source: Upstart Business Journal
The big day is finally almost here. The Securities and Exchange Commission is slated to meet tomorrow and could vote on rules opening the gates of equity crowdfunding to unaccredited investors.
It’s a move that’s been anticipated since the passage of the JOBS Act more than a year ago, and one that could revolutionize the way businesses get money.
Liz Gannes at AllThingsD broke the news of the SEC meeting, and writes:
The big deal here is the loosening of restrictions on what are known as accredited investors — currently, those with self-reported income exceeding $200,000 in each of the two most recent years, or net worth of $1 million.
The JOBS Act would allow approved crowdfunding portals to help startups raise money from people with a net worth of less than $100,000, as long the investment doesn’t exceed five percent of their income or net worth, and the companies don’t raise more than $1 million from the crowd per year.
But sites have been waiting on the SEC’s rulemaking process before they could actually implement that part of the law, a source of frustration to many, including some of the politicians who wrote the law.