NEWS: SEC Proposes New Rules For Title III Equity Crowdfunding

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.

You can also read more on Forbes and TechCrunch.

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.

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