In March 2015, the Securities and Exchange Commission finalized rules under Title IV of the 2012 Jump Start Our Business Start-up (JOBS) Act, paving the way for private companies to raise up to $50 million from non-accredited investors
potential investors who meet specific net worth or income criteria--but to only 35 potential non-accredited investors
It has taken advantage of new investment regulations outlined in the 2012 JOBS Act, which allows startups to raise up to USD50m from accredited and non-accredited investors
Using this strategy, you can conduct a legally compliant offering of an investment opportunity that you can advertise however you choose, with both accredited and non-accredited investors
Regulation A+ bumps the limit to $50 million annually and also allows non-accredited investors
But SumuFund will be open to both accredited and suitable non-accredited investors
Broadly, under Rule 506(b) an issuer can issue securities to up to 35 non-accredited investors
The Ontario Securities Commission (OSC) recently issued a progress report on their review of these exemptions to facilitate capital raising (OSC Progress Report) and we are encouraged that they are contemplating the development of an OM exemption in line with Alberta's so we can expand opportunities to non-accredited investors
The quiet Rule 506 offering prohibits general solicitation but allows companies to sell securities to up to 35 non-accredited investors
in addition to accredited investors.
In order for a company like EquityNet to offer crowdfunding to non-accredited investors
, it must register with the U.
The key thing is in the nature of the investors--Reg D allows for up to 35 non-accredited investors
This may be the favorite exemption for the entrepreneur seeking to syndicate a small multi-family project or neighborhood shopping center offering, for the following reasons: general solicitation, advertising, cold calls, mailings and the like may be employed, permitting new investors to be solicited and brought into the fold for this and future transactions; investors may be enticed by the prospect of acquiring a fully tradeable security not subject to the strict resale limitations of other privately placed securities, no limitation exists on the number of non-accredited investors
which may be brought in, widely opening markets, and transaction costs should be reduced since the disclosure requirements are reduced as is the time involved from contract to closing.