The recent release by the Securities and Exchange Commission of the rules enacting the JOBS Act has finally made crowdfunding a reality for American small business.
And soon, anyone can invest in a start-up.
Prior to this action by the Commission, investments were limited to investors who met certain income and net worth conditions – or for whom securities sale exemptions existed because of the nature of the transaction.
No longer.
Starting January 26, anyone can invest in a start-up.
First you’ll have to find a “crowdfunding platform” that has registered with the Securities and Exchange Commission.
Only registered investment “portals” will enable start-ups and investors to utilize the new exemption for crowdfunding. So far, the SC has not published a list of these approved sites.
After you select your portal – or portals – you will have to create an account.
Each portal is required to provide educational information in addition to the information about individual start-ups.
Getting your neighbor’s investment in your start-up might be getting easier.
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