Equity Crowdfunding Ruling from the SEC to help Small Business! Effective May 16, 2016

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In the works since June but now released last week from the SEC, makes equity crowdfunding a reality for U.S. small businesses. To date, only accredited investors could invest in equity positions of these companies. Non-accredited investors will now be able to invest $2,000 or 5% of their annual income, in a 12 month period. Additionally, non-acc investors will be limited to $100,000 of securities through crowdfunding.

A maximum of $1,000,000 in a 12 month period limits these small companies but does open up to a larger investment base. The new SEC rules also remove the audit requirement that was originally enacted. That past requirement often added $25-$50 k in upfront cost to raise funds.

We believe that this one provision alone could become the very life-blood to the already expanding url/domain industry. Domain owners and developers will no longer need to sell their domain assets to raise working capital. They could now incorporate around a portfolio of domains/websites, and sell an equity position in that asset, while still continuing to hold a majority ownership position.

The new ruling is part of the SEC JOBS Act, a law designed to make it easier for startups and small businesses to raise capital from a wide range of potential investors. This new ruling will go into effect May 16, 2016!

5 thoughts on “Equity Crowdfunding Ruling from the SEC to help Small Business! Effective May 16, 2016

  1. Hi would you mind sharing which blog platform you’re working with?
    I’m going to start my own blog soon but I’m having a hard time deciding between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design and style seems different then most
    blogs and I’m looking for something unique.
    P.S Sorry for being off-topic but I had to ask!

    1. We are using wordpress that comes with our hosting package at wildwestdomains/godaddy. It’s very robust and easy to set up.

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