Startups will soon be able to solicit investments from anyone, thanks to new SEC rules.
The crowdfunding regulations, known as Reg CF (or Title III), open startup equity to all investors, where before companies could only solicit capital from accredited investors.
This is a big change, but it doesn’t mean that hoards of crowdfunding investors will flood the private equity market yet. The shift needs time to take effect, and even so, crowdfunding may not make the best sense for a lot of startups.
