JOBS Act

The CROWDFUND Act: everything you need to know

Yesterday, United States President Barack Obama signed into law the JOBS Act, which may be the most significant update to securities regulations since Sarbanes–Oxley was passed in 2002.

One portion of the new law, the CROWDFUND Act, has been creating a lot of buzz in Silicon Valley for months, as it will make it legal for startups the ability to raise money in small chunks from large numbers of non-accredited investors.

US Senate passes crowdfunding legislation

Non-accredited investors interested in investing in young companies and entrepreneurs hoping to use the internet to raise money for their startups are one step closer to their dreams today after the United States Senate passed the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act, also known as the CROWDFUND Act.

The Act is the Senate’s version of similar legislation that had already passed in the US House of Representatives and once reconciled, a final bill can be sent to president Barack Obama to be signed into law.