Entrepreneurs raising money through crowdfunding campaigns have typically rewarded their backers with early access to products and with tchotchkes like T-shirts and coffee mugs. But under new rules adopted Friday by the Securities and Exchange Commission, they will be able to offer a prize that could be more lucrative: an equity stake in their business. The rules will allow small investors to buy shares of private companies under the provisions of the Jump-Start Our Business
The SEC just voted on and passed rules to implement Title III of the JOBS Act, bringing non-accredited investors into the fold for equity crowdfunding. This sets the stage for equity crowdfunding to continue its exponential growth over the next 3-5 years, on top of the existing market for accredited investors. As the CEO of equity crowdfunding platform Crowdfunder.com, I’ve had a front row seat as a participant in JOBS Act legislation and the long delayed regulatory rulings.
Proposes Amendments to Existing Rules to Facilitate Intrastate and Regional Securities Offerings Washington D.C., Oct. 30, 2015 — The Securities and Exchange Commission today adopted final rules to permit companies to offer and sell securities through crowdfunding. The Commission also voted to propose amendments to existing Securities Act rules to facilitate intrastate and regional securities offerings. The new rules and proposed amendments are designed to assist smaller co