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JOBS Act Legislation Opens Up Crowdfunding

Under the new legislation, the typically small round of capital that flies under the regulatory radar for most startups has been expanded to $1 million a year.

By Sam Hogg

Opinions expressed by Entrepreneur contributors are their own.

Legislation Opens Up Crowdfunding
image credit: Comedy Central

The JOBS Act, signed by President Obama earlier this year, will dramatically change the nature of early-stage funding.

With buzz from fundraising websites like Kickstarter and Indiegogo, equity crowdfunding is a welcome player. Under the new legislation, the typically small round of capital (in terms of dollar amount and number of participants) that flies under the regulatory radar for most startups has been expanded to $1 million annually, with similarly limited oversight from the Securities and Exchange Commission.

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