New SEC Rules are Big for Startups
This week the Securities and Exchange Commission (SEC) approved new rules that will open the process of raising money for startup entities. This is a HUGE development and benefit for companies looking to gain investors and funding. Now, startups and other money-raising entities, like hedge funds and venture capital funds, will be able to publicly seek and advertise for investments through a process known as “general solicitation.”
For now, startups will be restricted to “angel investors” and will not be able to “crowdfund” (using such websites as kickstarter) from non-millionaires. The SEC is expected to issue rules regarding crowdfunding within the next year.
For more a deeper analysis, visit http://www.wired.com/business/2013/07/the-emerging-vc-machine/?cid=9730654.
