Regulation Crowdfunding is the name given to the process whereby anybody (the crowd) invest in a company in exchange for its securities.
It is a new capital raising and investing method. Regulation crowdfunding (Reg CF) enables startups and small businesses to raise up to $5 million per year from non-accredited and accredited investors, through funding portals. Non-accredited investors are considered all individuals with an income lower than $200 K/year.
Starting May, 16 2016 when the Regulation Crowdfunding became active, non-accredited investors can be shareholders.