SEC-PR-2024-50 (APR. 25, 2024) Source: https://www.sec.gov/newsroom/press-releases/2024-50 Download: SEC-PR-2024-50 ⊗ (PDF) PRESS RELEASE | 2024-50 SEC Small Business Advisory Committee to Discuss Regulation Crowdfunding and the State of Angel Investing. Washington D.C., April 25, 2024 — The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee ⊗ today released the agenda ⊗ for its meeting on […]
Category: Regulation Crowdfunding
Regulation Crowdfunding (Reg CF) is a regulatory framework enacted by the SEC under the JOBS Act of 2012, allowing small businesses and startups to raise capital from individual investors through online platforms or “crowdfunding portals.” It permits companies to raise up to $5 million in a 12-month period, with individual investors limited in how much they can invest based on their income and net worth. Companies must disclose certain financial information and business details to potential investors and are subject to ongoing reporting requirements. Reg CF aims to democratize access to capital for early-stage ventures while providing investor protections through mandated disclosures and regulatory oversight, fostering entrepreneurship and innovation in a more accessible manner than traditional funding avenues like venture capital or IPOs.