The U.S. Senate simplifies the procedure for start-ups financing

Today the U.S. Senate has approved a bill considerably simplifying the start-ups financing at the seed rounds, according to Techcrunch.com. The bill, which was received by the Senate in the beginning of this year, has not yet passed through the hearings in the House of Representatives and the signature of the President, but the support from both parties makes it a possible candidate for the status of a full-fledged law.

Today, the sale of capital assets by a private company is subject to the regulations of SEC. The existing restrictions in the law narrow the potential pool of investors: they may be those who have more than $ 1 M on the account, or a regular income of $ 200,000 a year per person, or an income of $ 300,000 for a family and a number of other options.

If the new law is approved by the President, the following changes will be added to the current state of affairs:

• Registering the sites where the capital assets are sold with the SEC is allowed (the central project providing the angelic financial flows of the Valley, has already issued the official release about the support);
• The maximum round volume from non-accredited investors will comprise $ 1 M;
• The total amount of investment by the new angels is limited: the individuals with incomes up to $ 100,000 will be able to invest up to 5% of their income, and individuals with an income of more than $ 100,000 will be able to invest in start-ups up to 10% of the annual income.