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Showing posts from March, 2015

Almost Anyone Can Now Invest in Private Companies: SEC Finalizes CrowdFunding Rules

It's been a long time, you and I. We'll try this again for this special news. 
Yesterday, the SEC announced its final guidance for fundraising under the JOBS Act, and the news is overall very good for startups and any private companies that want to raise capital. 
Here's the full 250+-page SEC document (and I expect you to read it all. Quiz on Friday). 
At least two parts are worth paying attention to: 
1) you can invest up to 10% of your net worth if you're not an accredited investor (acc investor has at least $1 million net worth or $200k annually of income)', which means if you're net worth is $10,000, you can invest up to $1,000 in private companies, and
2) up to 30% of a stock offering can come from existing shareholders; the rest comes from the company issuing new stock. It's a built-in path to liquidity for investors, employees, and founders, with a rational limit that should attenuate attempts to dump stock on the unsuspecting general public. 
That…