Is The JOBs Act Really Connecting Companies With Non-Accredited Investors?


Most in the microcap space hear about the JOBs Act on a regular basis. When thinking about the JOBs Act and Reg A+, many think of raising crowdfunding from non-accredited investors

While unaccredited crowdfunding was an exciting part of the JOBS Act, to date, a very small portion of the funding realized under the new act has been from unaccredited investors

The data below details the implementation and use of each of the crowdfunding laws:

Title II (accredited): effective Sept 2013, 6,613 offerings, $1.47 billion in capital commitments

Title III (non-accredited): effective May 2016, 49 successful offerings, $11.5 million committed

Title IV (non-accredited): effective June 2015, 133 offerings filed, outcomes TBD

As you can see above, most transactions have been under Title II of the JOBs Act. Title II is responsible for 6,613 of the 6,795 offerings (97%) and $1.47 billion of the $1.4815 in capital commitments (99%). Title II (accredited) has also been effective since Sept 2013, much longer than Title III (non-accredited effective May 2016) and Title IV (non-accredited effective June 2015). 

According to Chance Barnett, CEO of, “the large majority of startups backed by notable angels and VCs aren’t opting to take advantage of the newer non-accredited crowdfunding laws under Title III and IV.But it’s also worth noting that the non-accredited equity crowdfunding alternatives are much newer and will likely grow over time.”

Barnett says “The key reasons for the slow growth are likely due to the relative high costs, time, and potential risks associated with both non-accredited funding paths (i.e., Title III & Title IV).” 



Reg A+


Tittle II

Title III

Title IV

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