Key takeaways

• The SEC adopted final Regulation Crowdfunding without too many significant changes from the proposal. The first offerings should occur sometime this coming summer based on the effective date.
• Anyone may invest in a crowdfunding offering, but there are strict caps on the total amount they can invest. Generally, an investor can only invest up to around 10% of their annual income or net worth, whichever is lower.
• Issuers, which can include most US companies but not non-US entities and funds, may only raise up to $1 million total in a twelve-month period.
• Intermediaries include both registered broker-dealers and the newly-created “funding portals,” and may, under the final rules, receive an ownership interest in the issuer under limited circumstances.