Entrepreneurs and start-up companies looking for investors will be able to solicit over the Internet from the general public under a new proposal issued yesterday by U.S. regulators, Reuters reported. The "crowdfunding" proposal, if adopted by the Securities and Exchange Commission, would be a major shift in how small U.S. companies can raise money in the private securities market. Private companies are currently allowed to solicit only accredited investors — those with a net worth of at least $1 million, excluding the value of their homes, or annual income of more than $200,000. The crowdfunding rule would let small businesses raise up to $1 million a year by tapping unaccredited investors.
