In November 2011, the House took on crowdfunding via the Entrepreneur Access to Capital Act (H.R. 2930) which passed 407-17. You can read the full post about the House’s bill and its key features here.
- entrepreneurs could raise up to $1M from unlimited number of unaccredited investors (without registering with the Securities and Exchange Commission)
- entrepreneurs seeking to raise capital through crowdfunding must do so through a website and must disclose risks to investors
- entrepreneurs must incorporate as a business according the applicable state law and must file with the SEC
- individual investors could invest up to $1000
One group voicing their hesitation is the North American Securities Administrators Association. It fears that legislated crowdfunding measures could lead to speculative investment that could be risky to new or small-fund investors.
- Crowdfunding bill gains in Congress [New Hampshire Business Review]
- Hearing: Spurring Job Growth Through Capital Formation While Protecting Investors [U.S. Senate Committee on Banking, Housing, and Urban Affairs][view archival webcast]