Startups can now raise up to $50 million from individuals with some caveats

A new provision of the 2012 Jumpstart Our Business Startups Act is kicking in Friday, allowing startups to raise up to $50 million from non-accredited investors.

The provision is a step toward allowing more non-accredited investors, or ordinary individuals, to participate in private-company investing and further expand the concept of equity crowdfunding. But as companies await a final ruling on crowdfunding itself, the provision comes with a lot of legwork for companies.

Accredited investors are defined as those who have an annual income above $200,000, or a net worth of more than $1 million, not including their primary residence.

By Caitlin Huston

Full Story: http://www.marketwatch.com/story/startups-can-now-raise-up-to-50-million-from-individuals-with-some-caveats-2015-06-19