Crowdfunding Now!

The summary below was written by the Congressional Research Service, a nonpartisan division of the Library of Congress. Fix Crowdfunding Act This bill amends the Securities Act of 1933 (Act) to increase from $1 million to $5 million the aggregate amount of securities sold to all investors by an issuer that qualify for the crowdfunding exemption from certain prohibitions relating to interstate commerce and the mails. The bill amends the Jumpstart Our Business Startups Act (JOBS Act) to declare that a crowdfunding portal shall have a reasonable basis for disqualifying issuers from offering securities through the portal if through a background check it has found that an issuer has made an untrue statement of a material fact, omitted to state a material fact necessary to avoid making misleading statements, or engaged in fraud or deceit. No intermediary (crowdfunding portal) shall be liable for an issuer's material misstatements and omissions unless, in connection with the offer ...

According to TechCrunch , "The SEC today paved the way for a new era of venture capital investing by  stating  it won’t pursue enforcement action against  FundersClub , whose platform lets any accredited investor fund startups in exchange for equity. Before, some thought FundersClub’s founders could face jail time for violating finance laws . FundersClub’s model could be used by others to raise capital online for startups before the JOBS Act goes fully into effect." This is a good sign, but not the small scale equity crowdfunding approval we have been waiting for. The SEC validated something that is currently legal to do: it let investors with over a million in net worth invest using an online platform. Yawn. See article links below. Nothing to see here. Please move on. Related articles JOBS Act Expected to Increase Diversity in Funding SEC recognizes FundersClub as first-ever online VC The Crowd's Money Can Dominate Early-Stage Investing, But Only If T...