Full text copy of the CROWDFUND Act of 2012 (S.2190) introduced by U.S. Senators Jeff Merkley (D-Oreg.), Scott Brown (R-Mass.), and Michael Bennet (D-Colo.). The Act helps the Crowdfunding cause by amending the JOBS Act and making it easier for "small-money" to participate in funding and capital raising platforms. On March 22, 2012, the Senate passed the Act 73-26.
From tech news outlet TechCrunch: "...certain measures have been written into the bill to protect both startups and their non-accredit investors. Under the amended legislation, entrepreneurs will be able to raise up to $1 million per year through SEC-registered crowdfunding portals. The bill also limits the amount of money people can invest based on their income.
For example, investors with an income of less than $100K will be capped at 5 percent, or $2K investments, and those with incomes over $100K will be capped at 10 percent, or $10K. On top of that, the bill also requires crowdfunding sites to provide protection, including investor education materials that inform people to “the risks associated with small issuers and illiquidity.”
Please see full publication below for more information.
