Crowdfunding for Internet Stock Sales Approved by SEC
BUSINESSWEEK
By Dave Michaels
WASHINGTON, DC---Startups and small businesses could sell ownership stakes in their companies by soliciting investors over the Internet under a proposal advanced by the Securities and Exchange Commission. The SEC’s proposal, open for public comment for 90 days, becomes the second regulation from the JOBS Act advanced under Chairman Mary Jo White. Businesses using crowdfunding could raise no more than $5,000 a year from someone whose income or net worth is less than $100,000. Investors with income or net worth greater than $100,000 could contribute as much as 10 percent of their annual income or net worth, to a maximum of $100,000 in one year. Other portal operators that have shown interest in equity crowdfunding include Indiegogo Inc., EquityNet LLC, and RocketHub Inc. Kickstarter Inc. (0772240D:US), the most popular crowdfunding platform to date, has said it doesn’t intend to participate in equity crowdfunding.[link]
By Dave Michaels
WASHINGTON, DC---Startups and small businesses could sell ownership stakes in their companies by soliciting investors over the Internet under a proposal advanced by the Securities and Exchange Commission. The SEC’s proposal, open for public comment for 90 days, becomes the second regulation from the JOBS Act advanced under Chairman Mary Jo White. Businesses using crowdfunding could raise no more than $5,000 a year from someone whose income or net worth is less than $100,000. Investors with income or net worth greater than $100,000 could contribute as much as 10 percent of their annual income or net worth, to a maximum of $100,000 in one year. Other portal operators that have shown interest in equity crowdfunding include Indiegogo Inc., EquityNet LLC, and RocketHub Inc. Kickstarter Inc. (0772240D:US), the most popular crowdfunding platform to date, has said it doesn’t intend to participate in equity crowdfunding.[link]
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