The SEC’s decision to adapt the rules in Title III of the JOBS (Jumpstart Our Business Startups) Act to embrace crowdfunding is ?designed to assist smaller companies with capital formation and provide investors with additional protections?.Until now, it was only agreed that accredited investors ? generally professional, high net worth individuals ? could back businesses seeking funds via the channels.? However, the update from the SEC, which?continuously delayed any changes to legislation,?will provide unaccredited investors the opportunity to make returns on promising firms ? having. Following the announcement, London-based equity crowdfunding platform Seedrs has revealed a commitment to the US. The company expects to make an official launch in the country in early 2016 when the changes are finalised, while a beta test with accredited American investors will be live within weeks to offer access to selected campaigns seeking investment. Seedrs has been waiting for this moment for over a year and made the first step to conquer the US with the acquisition of California-based crowdfunding service Junction in 2014. Since then, the British firm has been looking for the right approach to comply with US laws. Mary Jo White, SEC chair, said: ?There is a great deal of enthusiasm in the marketplace for crowdfunding, and I believe these rules and proposed amendments provide smaller companies with innovative ways to raise capital and give investors the protections they need. ?With these rules, the Commission has completed all of the major rulemaking mandated under the JOBS Act.?
Read more on Seedrs:
- How Upper Street found success in luxury shoe market ? and on crowdfunding platform Seedrs
- Andy Murray builds on crowdfunding advisory role with three new investments
- Crowdfunding firm Seedrs valued at ?30m following ?10m Series A investment
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