29, 2013 - SEC Rule Update
Under the proposed rules, companies would only be able to raise a maximum aggregate amount of
$1 million through crowd funding offerings in a 12-month period.
And investors would face similar caps: The SEC said in one year they would only be permitted to invest up to $2,000 or 5 percent of their annual income or net worth, whichever is greater, if both their annual income and net worth are less than $100,000. Alternatively, the SEC said people could invest up to 10 percent of their annual income or net worth, whichever is greater, if either their annual income or net worth is equal to or more than $100,000. During the 12-month period, these investors would not be able to purchase more than $100,000 of securities through crowd funding.
The companies would be subjected to certain disclosure requirements, too. Those include the following, the SEC said: