What Title III Of The JOBS Act Really Means

What Title III Of The JOBS Act Really Means by George Gaprindashvili, PitchBook

Last week, the U.S. Securities and Exchange Commission (SEC) approved Title III of the Jumpstart Our Business Startups (JOBS) Act, allowing non-accredited investors—individuals with an income of less than $200,000 per year or a net worth of under $1 million—to invest in startups. The ruling, which will go into effect 180 days after publication in the Federal Register, has generated a good deal of excitement, but it's important to understand how the parties involved will actually be affected.

The Investor

There are rather strict limits on how much individuals can invest under Title III. These limits are intended to protect investors who engage in equity crowdfunding by...