The Final Crowdfunding Rules give small businesses an additional avenue to raise capital, but impose significant compliance requirements on both issuers and intermediaries.

On October 30, 2015, the US Securities and Exchange Commission adopted final rules to permit companies to offer and sell securities through crowdfunding (the Crowdfunding Rules). The Crowdfunding Rules enable investors to purchase securities in crowdfunding offerings, subject to certain limitations, and require issuers relying on the Crowdfunding Rules to disclose certain information about their business and offering, as mandated by Title III of the Jumpstart Our Business Startups Act (JOBS Act). Specifically, the Crowdfunding Rules permit an issuer to raise a maximum aggregate amount of US$1 million through crowdfunding offerings in a 12-month period and allow investors to invest up to US$100,000 across all crowdfunding offerings in the course of a 12-month period, depending on their annual income and net worth.

Download the Full Article Here
Back to All Resources