附近上门

Companies raising money through regulation crowdfunding can now raise up to $5 million, the United States Securities and Exchange Commission Monday.

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Previously, entrepreneurs had a limit of $1.07 million for regulation crowdfunding. Regulation crowdfunding provides entrepreneurs with an exemption from the SEC鈥檚 registration requirements for securities-based crowdfunding, according to the SEC website.聽

This means that entrepreneurs can raise up to a certain amount of their securities without having to register the transaction with the SEC. Before, that amount was $1.07, and now it鈥檚 $5 million.

The amendment passed by the SEC comes after there鈥檚 been more conversation around expanding opportunities to invest in startups. Last month, the SEC changed another rule, expanding its definition of an accredited investor.

Accredited investors previously had to meet certain income and wealth requirements. Now, the SEC has expanded that pool to other individuals who may not meet the income and wealth requirements, but have other proof of 鈥渇inancial sophistication,鈥� according to .

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