Regulation Crowdfunding by the SEC

TL;DR - Crowdfunding rules set by the SEC

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Tags - crowdfunding, crowdfunding rules and restrictions, Regulation Crowdfunding

Questions answered:

  • What are the rules for crowdfunding in the U.S.?

Summary:

  • The rules for crowdfunding set by the SEC (Regulation Crowdfunding):
    • require all transactions to take place online through an SEC-registered intermediary, either a broker-dealer or a funding portal
    • permit a company to raise a maximum of $1,070,000 through crowdfunding offerings in a 12-month period
    • limit the amount individual investors can invest across all crowdfunding offerings in a 12-month period and
    • require disclosure of information in filings with the SEC and to investors and the intermediary facilitating the offering
  • Securities purchased in a crowdfunding transaction generally cannot be resold for one year.

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