SEC Redefines Equity Crowdfunding Rules

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Equity Crowdfunding redefines by SEC

Equity Crowdfunding rules

CountDown Comes To End :
Countdown is over. More than three years after the JOBS Act was signed into law by President Barack Obama since a federal equity crowdfunding law was approved, entrepreneurs nationwide now can raise money by selling stock to small-time investors. Now, the new law  of Title -III of Jobs Act has been passed by SEC and it’s a good news for non-accredited investors who are waiting to be legalized to and it will be the booming market for equity crowdfunding.

Explode Your Equity Crowdfunding With Approved Rules By SEC :

Climax of the proposed rules for Title III of the JOBS Act that legalizes equity crowdfunding:

  • Allows companies to raise up to $1 million in a 12-month period through crowdfunding offerings.
  • Allows individual investors to invest in the aggregate across all crowdfunding offerings, over a 12-month period, up to :
    • If either their annual income or net worth is less than $100,000, than the greater of $2,000 or 5 percent of the lesser of their annual income or net worth.
    • If both their annual income and net worth are equal to or more than $100,000, 10  percent of the lesser of their annual income or net worth; and
  • During the 12-month period, the aggregate amount of securities sold to an investor through all crowdfunding offerings may not exceed $100,000.

In Nutshell, Under the new rules,companies are able to crowdfund $1 million from unaccredited investors on an annual basis.For non-accredited investors, it’s a chance to be part of the next big idea.

Boom Time To Put Legs Into Equity Crowdfunding:
So its a boom time from now to start putting legs into the world of equity crowdfunding by launching your own equity crowdfunding platform which will bring more money to economy through various startups.It will provide a great opportunity for long-term success and ongoing development by bringing entrepreneurs closer to future investors. By the announcement of this law in October 2015, the demand of Crowdfunding Software will grow rapidly.

As in today’s digital era building a crowdfunding platforms has become a lot simpler with the improvements in White label Crowdfunding Software. At fundraisingscript.com, provider which has a popular name helping in building robust customize Equity Crowdfunding Software for any niche-specific crowdfunding business model with ease.

If you want to start your own crowdfunding for any verticle or for any cause/idea Contact us now or watch live demo with detail WORK FLOW

Conclusion
The crowdfunding industry will result in a massive growth by the end of this year. It is estimated over a rise of $35 billion all over the world. With this growth regular people will become the new LPs and with this platforms will become the new VCs in the near future with the change in Title III Equity crowdfunding rules.