It took four years for the Title III of the Jumpstart Our Business Startups Act (JOBS Act) to be officially enforced on May 16, 2016. Investment crowdfunding in the US is heavily regulated as compared to the UK, where regulators have been slightly more lenient which has resulted in Crowdfunding being widely viewed as a success in the UK.
The Congressional “Father” of Title III of the JOBS Act, Rep. Patrick McHenry, introduced the “Fix Crowdfunding Act” into the House of Representatives. Its provisions are focused on Keep reading this post
The Jumpstart Our Business Startups Act (JOBS Act) Title III came into power on May 16th – expanding the investment opportunities to non-accredited investors, who have been historically excluded from this process. Every American will have access to invest in startups and small businesses and share in their financial success. If you are thinking to put your money in a startup, here are some things you need to know.
What’s the difference between investment crowdfunding & rewards-based crowdfunding?
Equity or investment crowdfunding enables investors to invest in companies fundraising on online portals and gain ownership, or a promise of future returns while in rewards-based crowdfunding you will only receive a “reward” for your contribution to the company. Keep reading this post
Crowdfunding and other forms of alternative finance are quickly redefining the capital market as we know it, by granting investors unprecedented access to previously exclusive markets. And with the passage of Title III, the crowdfunding’s reach has been expanded even further to include non-accredited investors. Here are some basics of the way the new crowdfunding works.
- Both accredited investors and non accredited investors may invest in Title III crowdfunding offerings – subject to caps based on their income and net worth.
- Individual investors, over a 12-month period, can invest in the aggregate across all crowdfunding offerings up to: Keep reading this post
Yesterday, new crowdfunding regulations under the JOBS Act Title III opened a new door in crowdfunding – now non-accredited investors can invest in private companies using online intermediary platforms. If you are considering crowdfunding for your business, here is what you need to know:
- A company can raise a maximum aggregate amount of $1 million through crowdfunding offerings in a 12-month period via a registered broker-dealer or registered crowdfunding portal. Keep reading this post