Since June, non-accredited investors have been allowed to make equity investments through crowdfunding portals under Title IV of the Jump Start Our Startups (JOBS) Act. But several Securities and Exchange Commission rules are holding back that activity. Among them is the definition of an investment company under the Investment Act of 1940, which has ensnared startups trying to use special purpose vehicles (SPVs) in crowdfunding efforts as a way to keep their capitalization tables clean.
