“Emerging Growth Companies” under Jumpstart Our Business Startups Act (2012)
…ate, by rule. The draft law will include substantial protections against abuses and frauds in the solicitation of “crowdfunding” investors. Such investors need not be “accredited investors” or “institutional investors,” so such protections would impose burdens on the brokers and “funding portals” to take measures to reduce the risk of fraud under new SEC rules, including obtaining a background and securities enforcement regulatory history check on…