“Private companies are now only allowed to solicit investors deemed to be ‘accredited,’ meaning they have a net worth of $1 million [..] or an individual annual income over $200,000. The crowdfunding rule would let small businesses raise up to $1 million a year by tapping unaccredited investors. Companies could sell stakes to mom-and-pop investors without registering the securities with the SEC, a move designed to make it cheaper and less cumbersome for struggling startups trying to get their businesses off the ground. They would still be required to raise the money through regulated broker-dealers such as CircleUp or through crowdfunding portals.”

http://finance.yahoo.com/news/u-sec-release-long-awaited-105956761.html

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