SEC loosens small-company investment rules; but still no crowd-funding
The SEC has just updated a long-standing investment regulation in ways that will make it somewhat easier for small companies to raise investment capital from all investors (i.e. not just “accredited” investors). The Locavesting website offers a good overview of the changes; for more detail, see this overview from Crowdcheck, a company that offers disclosure and transparency tools for investors and entrepreneurs and tracks the emergence of investment-oriented crowdfunding. While the changes will reduce some of the compliance burden for small companies and opens up the possibility of using social media to spread the word, it does involve some significant federal and state oversight.
This is not the long-awaited SEC Crowdfunding rule, which continues to languish somewhere deep inside the SEC’s rule-making labyrinth.