SEC gives OK to online investor crowdfunding

The U.S. Securities and Exchange Commission on Friday approved new rules that will allow startup companies to more easily raise money from investors using newer technologies such as online crowdfunding sites.

The rules are part of the Jumpstart Our Business Startups Act passed by Congress and signed into law by President Barack Obama in 2012.

The changes allow nonaccredited investors to buy in to crowdfunding offerings. Startups can now raise $1 million in any 12-month period through crowdfunding.

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