by: Grow VC Group

The Securities and Exchange Commission, SEC, on Friday morning voted 3-1 to approve equity crowdfunding rules, i.e. Title III of JOBS Act. It happened over three years after the Congress and President approved the JOBS Act. Some parties had already lost their hope to ever get the equity startup funding to the US. Some other markets, like the UK, have developed rapidly during this time.

According to the new rules startups and small businesses will be allowed to raise upwards of $1 million per year from the general public via online platforms. And also non-accredited, basically anyone, investors are allowed to invest in these companies within limits, i.e. with annual incomes or a net worth less than $100,000 to invest a maximum of 5% of their yearly income or net worth, or up to $2,000 if that’s greater. Those with higher incomes can invest up to 10%. Investors generally are not able to sell shares for at least a year.

Companies can offer their shares through licensed broker-dealers or new type regulated Funding Portals. The Funding Portals must provide adequate investor information and make background checks on issuers, their executives, and their officers. They also must make issuer information available on their portals for at least 21 days before securities can be sold, and enable conversations on the platform about each offering. The portals could be held liable for issuer fraud against investors. The new portals can startup in late January.

Grow VC Group told in September it will sell its StartupCrowfunding.com services. You can read more about the background and the auction here. Due to SEC’s decision, Grow VC Group decided to extend the auction time until January 15th. This will allow also those new services that will utilize Title III to make a bid and be able to get the best startup crowdfunding domain and service.

StartupCrowdfunding.com service is a great opportunity for someone to launch a new business model or service, consolidate existing services at global scale or to attract and/or be closely associated with startups in scalable manner, combined with a history and user base from the first equity crowdfunding service in the world. Crowdfunding was over $16 billion market in 2014. SEC’s decision will open a new significant market in the US and move the startup and small business funding in the US to a new era.

If you want to get more information or make a bid on StartupCrowdfunding.com auction, you can email to mergersacquisitions@growvc.com.

JOBS Act, President Obama

StartupCrowdfunding.com auction


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Saturday, October 31st, 2015 at 10:25 am and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.