And Finally . . . SEC Adopts New Crowdfunding Regulation
After a wait of some three and a half years after the JOBS Act was adopted in April 2012, the U.S. Securities and Exchange Commission has at last adopted Crowdfunding Regulations to permit startup companies to raise new equity funding through crowdfunding. The new regulations are lengthy (some 686 pages) and complex, and provide both more and less than one might have anticipated. These regulations will in certain situations permit a company to raise up to $1 million through crowdfunding in a 12-month period, and allow individual investors to invest up to $2,000 per year, or up to 5% of their annual income or net worth if greater than $100,000. The Crowdfunding Regulations, although adopted by the SEC, will not become effective until 180 days after they have been published in the Federal Register.
Krause Law will be making further blog posts in the near future to provide more detail on this much-anticipated but complex new alternative to startup company funding. Meantime, see the link below for the SEC’s press release and fact sheet on its new Crowdfunding Regulation.