With broad bipartisan support, the House passed on Thursday the “Jumpstart Our Business Startups (JOBS) Act.” The Act contains a number of measures designed to assist startups and small businesses, including in particular the removal of SEC restrictions on crowdfunding. From the Washington Post:
“The House bills passed Thursday would make it easier for small businesses to go public by lifting SEC restrictions on running advertisements soliciting new investors and permit ‘crowdfunding’ so that entrepreneurs can raise equity capital from larger pools of small investors. Small private companies also would be able to sell up to $50 million in shares as part of a public offering before having to register with the SEC, and could have as many as 1,000 shareholders, up from the current cap of 500.”
We’re reaching out to contributors to get their perspective on this important legislation, so watch this space. In the meantime, this roundup of commentary and analysis on crowdfunding should provide context for this latest development:
- Will Crowdfunding Supporters Be Disappointed When Legislation (Finally) Arrives?
- Crowdfunding & Startup Capital: A Look at Legislative Initiatives to Ease Restrictions
- Startup Financing: SEC Sending Mixed Signals with ‘Bad Actor’ Rule?
- Crowdfunding: The Future of Startup Financing?