Long awaited US crowdfunding rules finally adopted

Startups in the US will be able to raise money for investment through crowdfunding sources from mid-2016 following the adoption of crowfunding rules after a three year wait.

Under the new rules, firms will be able to legally sell stock to the general public, as opposed to current crowdfunding models which don’t sell equity. People will an annual income of less than $100,000 will be able to invest up to a maximum of 5% of their income or up to $2,000 if that sum is greater. Higher income individuals can invest up to 10%.

The new rules could be a strong source of early-stage income for both university startups and academic spinouts, allowing firms to appeal to university communities for investment.