When Your Starting A Company

If you are looking to present your opportunity to accredited investors there is a solution that you probably did not know about.

Companies that do this right have the broker / dealer do several things to insure that diligence is done to insure that the investors are indeed accredited. 

The Law

There is a new law called, Reg D 506 c that allows some solicitation of investors that previously was not allowed. Here is what the SEC says on their website:

The JOBS Act requires the SEC to adopt rules amending existing exemptions from registration under the Securities Act of 1933 and creating new exemptions that permit issuers of securities to raise capital without SEC registration.”

A good place to start for this type of effort  is the resource listed below this article.

“Enacted in 2012, the Jumpstart Our Business Startups Act, or JOBS Act, is intended, among other things, to reduce barriers to capital formation, particularly for smaller companies.