Wednesday, October 23, 2013

SEC Releases Crowd Funding Proposal

Seal of the U.S. Securities and Exchange Commi...
The Crowd Funding proposal has been released by the SEC today. If adopted, entrepreneurs and start-up companies looking for investors will be able to solicit over the Internet from the general public, a historic change in the regulatory structure regarding fund raising. Current regulations effectively limit solicitation of accredited investors - those with a net worth of at least $1 million, excluding the value of their homes, or annual income of more than $200,000. The crowdfunding rule would let small businesses raise up to $1 million a year by tapping unaccredited investors

We will have more once we review the proposal, but for those who can't wait, the proposal is here - SEC Crowd Funding Proposal. The SEC's Press Release - SEC Issues Proposal on CrowdFunding is at their site, as is their site to Submit Comments on CrowdFunding.

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