House to vote on tech investment bills

House to vote on tech investment bills

The House of Representatives is set to vote Tuesday evening on bills aimed at tweaking the rules for crowdfunding and encouraging investments in startups.

One bill would raise the amount of money companies can bring in from crowdsourced investors, from $1 million to $5 million. It would also make other tweaks to the crowdfunding rules.

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Republicans say this will improve upon a 2012 law that changed crowdfunding rules. The Securities and Exchange Commission formally adopted new rules related to investment crowdfunding last year, and they have been in effect for a few months.

Crowdfunding platforms like Kickstarter have been a popular way for consumers to pitch in to fund ideas they believe in, be it a restaurant or a new gadget, in recent years. But it has been a more complicated proposition to apply that model to investing.

A second bill is aimed at helping angel investors, the early-stage backers who are key sources of money for many startups.

Both bills are part of a GOP initiative to pass legislation related to technology and innovation in the months before November’s election. Democrats have a similar effort aimed at developing innovation policies this year.

The pieces of legislation are being considered under suspension of the rules, which means that they will require a two-thirds majority to pass but are subject to more limited debate. Suspension bills are traditionally brought to the House floor only when leadership has a high degree of confidence that they will pass.