Who does the JOBS Act specifically encourage to invest through crowdfunding?

The JOBS Act, or the Jumpstart Our Business Startups Act, was enacted in 2012 to encourage funding for small businesses while also easing some regulations on the sale of securities. One of its key provisions is the allowance for crowdfunding, which encourages a broader base of investors. Specifically, it opens the door for anyone, including non-accredited investors, to participate in crowdfunding.

Non-accredited investors are individuals who do not meet the income or net worth thresholds typically required to invest in certain securities, which traditionally limited participation to wealthier individuals and institutional investors. By allowing anyone to invest through crowdfunding platforms, the JOBS Act aims to increase access to capital for startups and small businesses and democratize the investment landscape, allowing for a wider range of individuals to support new ventures and potentially share in their success.

This inclusive approach is a fundamental aspect of the Act, promoting equity and opportunity in entrepreneurial endeavors.