Today the SEC voted in favor of a section of the JOBS Act
that will allow private companies to advertise their fundraising. Previously, news of raising money had to be
passed around in a private fashion. This
lift on the advertising ban will allow startups and private investors better
access to each other.
While private companies can now advertise, investment is
still limited to accredited investors who must meet certain income and wealth
requirements. The JOBS act intended to
make investments in startups available to everyone, not just accredited
investors. It is likely that we will see
the SEC allow this to come to fruition in the near future. Kickstarter has been a great crowdfunding
source so far, but once the SEC gives its blessing, we should see a plethora of
investing opportunities arise. Like all investments,
there will be some winners and some losers, but one clear winner is new startup
ventures looking for seed money.
Read the whole article "SEC Lifts Ban On General Solicitation, Allowing Startups To Advertise That They’re Fundraising" on techrunch.
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