JOBS Act Legislation Opens Up CrowdfundingUnder the new legislation, the typically small round of capital that flies under the regulatory radar for most startups has been expanded to $1 million a year.

image credit:Comedy Central

TheJOBS Act, signed byPresident Obamaearlier this year, will dramatically change the nature of early-stage funding.

With buzz from fundraising websites likeKickstarterand Indiegogo, equity crowdfunding is a welcome player. Under the new legislation, the typically small round of capital (in terms of dollar amount and number of participants) that flies under the regulatory radar for most startups has been expanded to $1 million annually, with similarly limited oversight from the Securities and Exchange Commission.