Overview

JOBS Act Title III and Crowdfunding: What We Know So Far ... Long-awaited rules that would allow small businesses and startups to solicit private securities investments from the general public for the first time in decades will soon be enacted. The rules would enable small businesses to raise up to $1 million in capital investments each year from virtually anyone in the United States through online platforms. To put it simply, companies would be able to sell shares of equity in their business to pretty much anyone willing to invest. The new rules would open up an online avenue for nonaccredited investors – those who have a net worth of less than $1 million and made less than $200,000 in each of the past two years – to invest in small businesses and startups alongside more financially sophisticated investors.