Wall Street Journal: New Rules Give Startups Access to Main Street Investors
Starting Monday, May 16th 2016 small companies and startups can raise as much as $1 million online from ordinary investors in a 12-month period. MF Fire and our modern wood burner will be one of those companies.
Until now, federal securities laws allowed only wealthy individuals, or so-called accredited investors, to participate in such offerings. The new fundraising option stems from the 2012 Jumpstart Our Business Startups Act, or JOBS Act. Under the rules, individuals with income or net worth of less than $100,000 can invest the greater of $2,000, or 5% of either their annual income or net worth, whichever is lower, in small-scale securities offerings in a 12-month period. Investors with income and net worth of at least $100,000 can invest up to 10% of their annual income or net worth, whichever is lower.
Read a bit more in the Wall Street Journal below.