Over recent years, crowdfunding has turned into a useful tool for entrepreneurs and businesses to obtain needed capital funding. However, tight securities rules often made this option unavailable to many individuals.

The JOBS Act accredited investors appreciate today was established to fewer securities regulations and to promote private funding of small businesses in the U.S. This made raising capital faster and less expensive and ultimately led to crowdfunding. As modifications were made to the JOBS Act, it enabled more investors’ participation in equity capital contribution to private businesses. Previously, these investments could only be accessed...