Excited does not come close to describing the mood today at crowdRipple. This week important legal steps will be taken that has the potential to empower all of us to impact our communities through crowdfunding.
This Friday October 30, 2015 the Securities and Exchange Commission will hold an Open Meeting at 10:00 a.m. EDT to consider whether to adopt rules and forms related to the offer and sale of securities through crowdfunding under Section 4(a)(6) of the Securities Act of 1933, as mandated by Title III of the Jumpstart Our Business Startups Act.
What does this mean for crowdRipple and our community?
The greatly anticipated Title III rules will be released, likely allowing non-accredited investors to invest in private companies for the first time in over 80 years and giving companies the ability to raise money from the crowd with a lower barrier to entry.
What can we expect?
At this point, we only know what has been proposed and commented on up to now. What is clear is that the SEC is taking entrepreneurial funding seriously. Title IV was a groundbreaking ruling, opening up funding and investments in ways we hadn't seen in over 80 years.
Title III is expected to take entrepreneurial funding a step further, making capital more easily accessible to early stage companies by allowing the 93% of the population to finally be able to have the opportunity to invest; which to date has been reserved for those with $1 million or more in their bank account. This will not only crack open the funding piggy bank for founders across the US but will also allow for everyday people to make an impact in their own communities and across the U.S. like never before. We truly expect a Ripple Effect!
What are the next steps?
If adopted by the SEC this Friday, the rules will be published in the Federal Register. This publishing period lasts 60 days, after which the rules go live.
What should you be doing?
We are so pleased to be part of history in the making and extremely excited to see how equity crowdfunding can empower all of us to make an impact throughout our communities. Let’s be the Pebble in the Pond that creates the Ripples for Change. One Ripple at a Time!