The United States Securities and Exchange Commission recently announced some substantial changes to “harmonize and improve” what they called a “patchwork” of rules pertaining to how companies can raise funding from the public — both accredited and un-accredited investors.
This action did not get much play in the press, but I spotted it and read it carefully. There is a lot of good news, but for the entrepreneur set there is a real gem.
Here is a link to their press release (an extremely difficult document to read and understand):
The bottom line is this: a company can now raise up to $5,000,000 (versus the prior $1,070,000) via a web based fundraising campaign with a registered firm without having to file the usual substantial SEC required registration filings. [You have to make prudent disclosures as you would in any offering, but this is a simpler, easier, bigger deal.]