It took four years for the Title III of the Jumpstart Our Business Startups Act (JOBS Act) to be officially enforced on May 16, 2016. Investment crowdfunding in the US is heavily regulated as compared to the UK, where regulators have been slightly more lenient which has resulted in Crowdfunding being widely viewed as a success in the UK.
The Congressional “Father” of Title III of the JOBS Act, Rep. Patrick McHenry, introduced the “Fix Crowdfunding Act” into the House of Representatives. Its provisions are focused on jumpstarting Title III, including increasing the annual offering limit from $1 million to $5 million, allowing special purpose vehicles (SPV’s), or syndicates, and allowing a company to “test the waters” for its proposed offering. Here is what it seeks to do: