In 2012, the JOBS act was signed. The JOBS Act 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).