Until last week only “accredited investors”—those whose net worth exceeds $1 million, excluding their primary residence, or who earn more than $200,000 a year—are allowed to participate in crowdfunding. The new ruling will let anyone invest as much as $2,000 or 5% of annual income or net worth, whichever is greater.
Rule will let anyone invest as much as $2,000 or 5% of annual income or net worth, whichever is greater. The Securities and Exchange Commission on Friday approved rules that pave the way for Main Street investors to take equity stakes in startup businesses raising capital via crowdfunding. The possibility of ordinary investor participation in equity-based crowdfunding began with the passage of the 2012 Jumpstart Our Business Startups Act, or JOBS Act, which aims to help startups and small businesses to raise capital from a...
