Earlier this week, the SEC lifted the general solicitation ban for Title II of the JOBS Act. Why is this important, what does it mean and just HOW exciting is this news to the Average Joe or Mary?
First, the Feds have finally understood the importance of “Main Street” having access to investment opportunities. Although various websites exist to raise funds for start-ups, early stage and innovative companies i.e. Crowdfunding (a few of which we have blogged previously), the general public has been concerned about the legality of such fundraising.
Second, it appears that the stringent requirements of formally raising capital have been greatly reduced. So, for those eager entrepreneurs, start-ups and private entities that are launching a capital initiative, they are now able to move beyond word-of-mouth and publicly solicit investors.
Finally, with the lift on the ban, we take a step forward and back onto the right path of growth and opportunity instead of living under the 80 year-old regulation that controlled full access to capital. Innovators, idea-makers and pioneers of discovery are now able to actively solicit capital with fewer restrictions and more opportunities for prosperity. The domino effect could result in companies now being able to raise and allocate funds for research, production, integration, construction, rents, advertising and supplies as they work to grow their business.
Are you ready to learn about growing your business, crowdfunding or our Life Sciences and Innovation niche practice group? Please call Paul Etzler, CPA, GACR at 440-449-6800 or email at email@example.com