Crowdfunding on Steroids: General Solicitation under Rule

Crowdfunding on Steroids: General Solicitation under Rule 506(c) (Private Placement Law Series) (Volume 4)

The new Rule 506 changes everything. The SEC has lifted an 80-year ban on general solicitation. Start-ups for the first time can use public advertising to sell private offerings. The new Rule 506 may prove to be the answer to the prayers of star-ups frustrated with existing fund sourcing platforms. But it also has hidden dangers that will cause many issuers to continue to use the â€œold Rule 506â€ [506(b)]. Among the new Rule 506 strengths: â€¢ The amount that can be raised is unlimited â€¢ There is no requirement for review of the offering under any Blue Sky laws (state securities regulations) â€¢ There is no review of the offering by the SEC â€¢ Solicitations can be online or offline â€¢ Solicitations can be made to anyone! Sales (as opposed to solicitations) must be to accredited investors, and issuers must be able to verify that any actual investor is â€œaccredited.â€ Also, proposed rules will require issuers to send the SEC all marketing copy; as of this writing, however, there is no need to send copies of solicitation materials to the SEC (or to state regulators). Soon you will start to see: â€¢ Emails asking if you might be interested in learning about investing in someoneâ€™s project â€¢ Videos of founders and entrepreneurs soliciting your interest in their projects â€¢ Links on websites inviting you to click through to learn more about an investment â€¢ Mobile apps with increasingly creative solicitation

Country	USA
Author	Douglas Slain
Binding	Paperback
EAN	9781492229179
Edition	First
ISBN	1492229172
Label	Private Placement Publications
Manufacturer	Private Placement Publications
MPN	black & white illustrations
NumberOfItems	1
NumberOfPages	68
PartNumber	black & white illustrations
PublicationDate	2013-08-22
Publisher	Private Placement Publications
Studio	Private Placement Publications
ReleaseDate	0000-00-00

Crowdfunding on Steroids: General Solicitation under Rule 506(c) (Private Placement Law Series) (Volume 4)

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