united-states, investmentI’ve heard of the recently enacted Title IV regulations allowing non-accredited investors to participate in funding startups, but I’m still not entirely sure what this means.
What exactly are the rules for raising money under Title IV and how do they differ from the pre-existing crowdfunding rules of the JOBS act. How does this law affect startups and small investors?
copied from wikipedia
In an open meeting 25 March 2015, the Securities and Exchange Commission (SEC) elected to approve and release the long-awaited final rules for Title IV of the JOBS Act (commonly referred to as Regulation A+). Per the final rules, under Regulation A companies will be permitted to offer and sell up to $50 million of securities to the general public subject to certain eligibility, disclosure and reporting requirements.[54] The final Regulation A rules were published in the Federal Register on April 20, 2015 and became effective on June 19, 2015.
The JOBS(Jump-start Our Business Act) act now allows small or even a average john doe to invest money in startups.
Earlier only those who had high annual income could invest money in startups but now with JOBS act there are so many new investors.
For Startups : their are so many new investors, maybe less but they will invest
For Investor : Now you don't need to earn alot to be able to get equity in a startup , you can invest too.
there is a limit though about how much they can invest . Read more on wikipedia : https://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups_Act
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