New rules met with resounding ‘meh’.
In just a few short weeks, Taxa, a San Francisco startup that makes genetically modified, glow-in-the-dark plants, raised $270,000—not from the usual coterie of slick, deep-pocketed venture capitalists but from 450 retail investors.
That was possible thanks to the JOBS Act of 2012, which included a measure permitting investors with less than $1 million in liquid assets and who earn less than $200,000 annually to buy small amounts of equity in startups. The change was finally enacted by the Securities and Exchange Commission in May, marking the first time unaccredited investors could purchase equity in private companies via public solicitations in 80 years. Read more…