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 platforms for at least 21 days before securities can be sold, and enable conversations on the platform about each offering. Platforms could be held liable for issuer fraud against investors.
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 firstname.lastname@example.org.