In 2012, the JOBS act was signed. The goal was to ease security regulations on small businesses to foster job growth through news business startups. The act consists of two key components:
Title II (Access to Capital for Job Creators) removes the ban on advertising for regulation D Rule 506 and Rule 144A offerings and on general solicitations.
Title III of the JOBS Act focuses on Crowdfunding. Title III opens participation to non-accredited investors and enables them to make investments in small companies. Furthermore, it also allows the company to raise up to $1 million over any 12-month period. Investments cannot exceed $2,000 in securities or a certain percentage of the investor’s annual income or net worth (if under $100,000 during a 12-month period).
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