SEC Approves Equity Crowdfunding from Unaccredited Investors
I run <a href="http://agfunder.com" rel="nofollow">http://agfunder.com</a> and our General Counsel is a former Chief at the SEC.<p>This is a non-starter and will only be used in special circumstances. Just because you have rules that allow non-accredited investors to invest, most companies do not want investments less than $10-15k on their capable. In effect you exclude most non-accredited investors anyways. The exception of course is for the earliest stage companies, but then they run into another problem: legal fees on a Reg A+ Are going to run you $40k-$70k. Compare that to $2-$5k for legal using a YC/500/TechStars template doc. The cost of admission is to high.<p>FundersClub and AngelList will also not benefit from this either because the New rules don't extend to fund structures like the 506(c) rules. So even if you could create some reusable template document with exhaustive disclosures you can't use it for these purposes. Jobs Act 2.0 may address this next year, but for now these rules are largely useless in practice.