- A company could raise up to $1 million is a 12-month period.
- Individual investors with annual income or net worth under $100,000 could invest the greater of $2,000 or 5 percent of the lesser of their annual income or net worth.
- Individual investors with both annual income and net worth over $100,000 could invest 10 percent of the lesser of their annual income or net worth.
- The maximum amount an investor can acquire over a 12-month period is $100,000.
- Securities purchased via crowdfunding would need to be held for a year.
- Funding portals would need to register with the SEC and become a member of a national securities association.
- Crowdfunding companies must disclose certain information to investors, the SEC, funding portals and other facilitating intermediaries.
I’ll post more after a full review of the final rule.
— Alan N. Walter