On Monday General Solicitation Opens Up

From Pando Daily:

"On Monday the JOBS Act finally goes into effect, and startups as well as venture capital and private equity funds can advertise their fundraising efforts to the world. However, they still can’t sell stock to the world. The onus is on the companies to prove that their investors are “sophisticated.” They are simply allowed to talk publicly about it now.

With the new rules, startups must file an advanced Form D with the SEC fifteen days before they plan to solicit investors. That is a challenge for many startups, because the forms are very detailed and these companies are often so early stage that they can’t answer all the questions. If they have to update anything, they must re-file with the SEC. And every time they so much as publicly talk about fundraising, they have to include the same sort of legal jargon that public company CEOs are required to include. If mess up, they’ll be placed in a penalty box of sorts, where they can’t raise new funds for a full year."

Reach out to pros on the paperwork, guys like me have tons of experience with labor intensive regulatory filings, but many don't and you do not want to be sidelined from mistakes made by lack of experience. However, if you are at this point you should already be "there" in theory. - C

Full Article Here