Please join us on Wednesday, November 6, at 2:00 p.m. ET to learn more about the new crowdfunding rules just released by the SEC. These new rules will implement the crowdfunding provisions of the “JOBS Act,” which permits a company to raise up to $1 million during a 12-month period.
Generally, investors who have an annual income and net worth under $100,000 would be allowed to invest the greater of $2,000 or 5 percent of income during a 12-month period. Investors who have either net worth or income of $100,000 or more would be able to invest the greater of 10 percent of income or net worth, with a $100,000 investment limitation during a 12-month period.
There have been some preliminary concerns that the regulations might require companies to verify investor eligibility by reviewing detailed tax information. However, the newly issued regulations simply require investors to vouch for their eligibility to invest under the income and net worth.
Crowdfunding offers a new source of capital for promising startup companies. Clearly, increasing the ability of small businesses to raise equity capital is much overdue and will fuel job growth and our economy. We hope you can join us to learn more about how your company can raise equity capital under these new rules.
