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.
Related Articles
