Series 79: Section 4(a)(6)

Section 4(a)(6)

Congress added Section 4(a)(6), the so-called “crowdfunding” exemption, to the Securities Act in 2012. These rules allow for small and startup companies to raise capital via the internet with relatively small individual contributions from a large number of investors.

Under the terms of the proposed law, “crowdfunding” transactions will be exempted from SEC registration, provided:

• • The aggregate amount the issuer sells to all investors in a 12-month period does not exceed $1,000,000 (this number has been adjusted for inflation to $1,070,000)
• • The aggregate amount sold to any investor does not exceed a given percen