US Senator Bennet Welcomes Final Rules on Title III, Equity Crowdfunding

Michael BennetThe senior Senator from Colorado, Michael Bennet, welcomed the announcement by the SEC today that revealed the regulatory framework for Title III, equity crowdfunding.  According to Senator Bennet, equity  crowdfunding will provide a new avenue for small businesses and startups in Colorado to acquire capital while “ensuring strong protection for individuals” who invest. Bennet notes that he was a lead sponsor of the Crowdfund Act back in 2012.

 

“We look forward to reviewing the final rule. Crowdfunding has the potential to be a powerful tool for small businesses and entrepreneurs to grow their businesses, the economy, and create new jobs,” Bennet said. “It can help these businesses raise the capital they need and provide new opportunities for individuals to make investments while ensuring them proper safeguards. As new technologies quickly evolve and advance, we must find new ways to build our innovation economy and support the nascent industries and businesses that will create jobs in the 21st century.”

As outlined by the SEC, non-accredited investors may purchase securities in companies raising up to $1 million.  The investments may take place on funding portals that have registered with the SEC.

 

 

The SEC has published a Fact Sheet, available here, outlining the parameters. The new exemption will become actionable in 2016.

 

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