Huge news from the world of crowdfunding. On October 30th, 2015, the SEC released the final rules for Title III equity crowdfunding, allowing all retail investors to start investing in startups. Read the SEC fact sheet here or if you really like reading, read the 686 page full statute here.
Here are some highlights:
- Companies will be able to raise $1 million through crowdfunding offerings in a 12-month period;
- Investors will be able to invest, but with limits based on the lesser of either their income or net worth. These limits apply to everyone, including accredited and institutional investors. There is also a hard cap of $100,000 regardless of calculated limits. See our limits table below:
|Income or Net Worth Amount (whichever is lesser)||12 month aggregate limit (across all title iii investments)|
|Less than $40,000||$2,000|
|Between $40,000 and $100,000||5% of the amount|
|Greater than $100,000||10% of the amount up to $100,000|
Stay tuned because Accredify will be offering services for both title iii investors and portals!