Next week will begin a new chapter for the startup industry. Starting Monday, new crowdfunding rules will permit anyone, not just the rich clan, to risk $2,000 a year or more investing in small companies in exchange for a stake in the business. Companies can raise up to $1 million a year this way.
Until now, only accredited investors, meaning those with an annual income of at least $200,000 or a net worth of at least $1 million, have been permitted to take equity stakes in most private companies.
