Today the SEC passed rules to implement Title III of the JOBS Act marking the start of true equity crowdfunding including non-accredited investors.
This is a momentous shift as it will be the first time in 80 years that everyday citizens will be able to invest in early stage companies.
This will have massive implications for both the entrepreneur and investor alike as it will open up a tremendous amount of new capital to startups while allowing investors to further diversify their portfolio.
Title III is slated to go live in 90 days and here’s what to expect.
Title III Summary
Equity crowdfunding expands to include non-accredited investors
90-120 days until any offerings go live
Startups and small businesses can raise up to $1M in a period of a year
Investors making <$100,000 per year can invest the greater of $2,000 or 5% of annual income
Investors making >$100,000 per year can invest up to 10% of their annual income
Offerings must be made via Broker-Dealer or Portal Intermediary
Significant disclosures are required for companies to help provide transparency
More Title III Information
For those seeking more detailed information on the rulings, the SEC posted this release.
If you’re interesting in leveraging Title III for fundraising or investing, be sure to fill out our quick Title III Form and we will keep you in the loop as Title III goes live.