New Rules Let Investors Buy Shares of Crowdfunded Startup Firms

Hear from an expert about the new and risky world of crowdfunded startups.

(Image credit: © 2016 Eric Millette, All Rights reserved)

Steve Branton is a financial planner at Mosaic Financial Partners, in San Francisco. Here’s an excerpt from our recent interview with Mr. Branton (pictured at left):

What do the crowdfunding rules allow? Someone making less than $100,000 per year or with a net worth of less than $100,000 can now invest the greater of up to $2,000 per year or up to 5% of their income or net worth (whichever is less). If both income and net worth are $100,000 or more, the cap is 10% of income or net worth, whichever is less, up to an annual cap of $100,000. Your house doesn’t count toward your net worth.

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Anne Kates Smith
Executive Editor, Kiplinger's Personal Finance

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage,  authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.