Up and Running
SEPTEMBER 10, 2014
million people qualify as accredited investors. If companies get funded at all, it’s likely to be from an angel, and an angel who is not part of an investment group. ” Yes, the JOBS Act (Jumpstart Our Business Startups) is exciting, and it will bring a lot more potential investors into the marketplace. Go for the gut.
Up and Running
AUGUST 26, 2014
” Essentially, companies weren’t allowed to advertise or use crowdfunding to attract investors. It gets rid of the prohibition of general solicitation, as long as investors resulting from that solicitation follow a few rules. On top of that, Rule 506(c) investors must be verified as accredited investors.
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Startup Professionals Musings
JANUARY 12, 2013
Sites like KickStarter have for years offered rewards and pre-sales for crowd investments, but real equity won’t be legalized until sometime this year for people other than accredited investors. Osmosis marketing is the hot new term for word-of-mouth advertising. Super-angels. Social mobile web.
Business Plan Blog
OCTOBER 25, 2013
In September of this year, the SEC voted to overturn the ban on “general solicitation” that made it illegal for companies to publicly advertise that they are raising capital. The proposed rules allow all individuals – not just accredited investors – to invest in companies via crowdfunding subject to certain thresholds.
Business Plan Blog
JANUARY 2, 2014
In September of this year, the SEC voted to overturn the ban on “general solicitation” that made it illegal for companies to publicly advertise that they are raising capital. While startups are still limited by the types of investors they can take money from (i.e. Download our free Raising Capital from Angel Investors eBook.
Both Sides of the Table
MAY 15, 2010
Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.)
Scott Edward Walker
OCTOBER 20, 2011
Tip #1: Do Not Advertise or Solicit Investors. Subject to certain limited exceptions, companies are prohibited from “general advertising” or “general solicitation” in connection with the private offering or sale of securities. This is part three of a three-part series, which was originally published on The Huffington Post.
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