According to an article on the EFactor website entitled, “Definitely A Happy Day At The RocketHub Headquarters”
On Friday, October 30, 2015, the Securities and Exchange Commission (the SEC) released the rules that will govern the SEC’s monitoring of Title III of the JOBS Act. This segment of the JOBS act covers equity crowdfunding law. It is supposed to bring small company investment opportunities to the masses, not just to those who fall into special designations. These designations are as follows:
- accredited investors – individuals who have made $200,000 per year for the last two years or who have a net worth of $1 million, not including one’s primary residence
- close friends and family of business owners
- employees of or consultants to a particular business seeking funding.
Note that the latter two categories are those that are exemptions to the accredited investor designation.
According to the article, “the SEC voted to permit small companies to raise a total of $1 million per year through crowdfunding platforms.” What does this mean for you and your company?