Photo Courtesy of Forbes

New crowdfunding regulations take effect



Startup companies looking to raise money can do so from almost anyone with available cash thanks to a new set of JOBS Act rules that took effect Monday.

The new regulations allow companies to raise up to $1 million from non-accredited investors in exchange for an equity stake in the company. Previously, only accredited investors — those with at least $1 million in net worth (excluding the value of their primary home) or an annual income of at least $200,000 — could get in on the action.

Under the new rules, investors will be able to:

  • Invest $2,000 or 5 percent of their annual income or net worth, whichever is greater, if both their annual income and net worth are less than $100,000.
  • Invest 10 percent of their annual income or net worth, whichever is greater, if either their annual income or net worth is equal to or more than $100,000.

The new rules are designed to help boost investments and get more people involved with startup investing.

Read more: St. Louis Business Journal

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