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  1. #1
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    BREAKING NEWS: SEC Approves Equity CrowdFunding General Solicitation!

    This is huge news guys, and likely is about to lead up to equity funding becoming available to non accredited investors here in the United States. A few hours ago, the Securities and Exchange Commission voted 4 to 1 in favor of implementing section 201(a) of the JOBS Act! In simple terms this means that people seeking funding by the means of equity crowdfunding may now advertise their ventures publicly. Up until this vote, and until the rule goes into effect, it is illegal for any US company to advertise in any way, online, or offline, that they are selling a stake in their company. This was the first major part of the JOBS Act which dealt with furthering equity crowdfunding in the United States.

    Here are some more articles about Today's Great News!
    http://techcrunch.com/2013/07/10/sec...on-ban-lifted/
    http://venturebeat.com/2013/07/10/se...-have-to-wait/
    http://www.crowdfundinsider.com/2013...te-placements/
    http://dealbreaker.com/2013/07/sec-v...n-dealbreaker/
    http://www.huffingtonpost.com/tim-be...b_3575958.html
    Last edited by SocialCam; 07-10-2013 at 06:43 PM.

  2. #2
    Yep this is a big deal, saw it on Twitter this morning.

    Thanks to Naval Ravikant and everyone else involved in this:

    http://www.youtube.com/watch?v=ugDyaVLPj3w

  3. #3
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    My hope is that this means we are only weeks away from the SEC setting forth the rules on equity crowdfunding. I was expecting no real progress until the very end of the year, however it looks like equity crowdfunding may go begin much sooner? opinions?

  4. #4
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    Even without the new rules for non accredited investors, this should really get things going in equity crowdfunding in 60 days. All those platforms which cater towards accredited investors can now advertise and market the heck out of projects they are sponsoring. This means big bucks are going to get injected into the market. September will be a big month for crowdfunding regardless of the SEC releasing their much anticipated rules regarding non accredited investors in my opinion.

  5. #5
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    Just as an update: Earlier today, the final rules were published in the Federal Register, and will go into effect in 60 days – on September 23.

  6. #6
    Quote Originally Posted by SocialCam View Post
    Just as an update: Earlier today, the final rules were published in the Federal Register, and will go into effect in 60 days – on September 23.
    That's indeed good news.

  7. #7
    The Big day is September 23rd, only about 4 weeks away. I wonder how soon after the rules go into affect we will begin seeing ads marketed towards equity projects. Right now all the equity platforms are pretty much private. With the rule change we may begin to actually see equity projects being promoted a bit.

  8. #8
    wow! you have really announced a superb news here, its splendid one to see up, i am now much delighted to see up this

  9. #9
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    I am also anxious to see if September 23rd we begin to see some major changes in the equity funding markets. Although non accredited investors can not invest, it's a huge step in the right direction to allow general solicitation.

  10. #10
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    Interesting to note, despite the new rules TheFundsClub still is not permitting solicitation of investors. Got this email today:

    First, our decision-making framework: We’ve always made platform-wide decisions based on facts and circumstances that are known to benefit both investors and startups, not hype. This deliberate and facts-based approach is what leads to sustainable wins, which is our economic incentive as a VC.
    Our stance on general solicitation is no different, which is why we’re opting to defer participation in general solicitation until it is a clear win for investors and startups. The reality is that as of today, top VCs, top incubators and accelerators, and the leading law firms advising investors and startups currently regard public fundraising as a question mark. Many are actively advising against it, and for example, are cautioning investors against companies who’ve participated in public fundraising to protect the investors.While we believe in the merits of increased transparency enabled by general solicitation, at this moment both startups and investors who participate in general solicitation are being put at unknown risk. Although other online platforms appear to be shouting from the rooftops about the merits of general solicitation, it is a fact that those at the center of the startup ecosystem remain cautious and are not yet convinced.
    THE ISSUES

    Overall, the key problem is it is still very much a grey zone. Startups that engage in general solicitation must verify all of their investors’ accreditation statuses, but the SEC didn’t specify exactly what’s required to do so. Failure to properly verify could force a startup into bankruptcy for blowing its securities exemption. The SEC has also proposed a new set of additional regulations which they can implement at any time. Aside from creating additional overhead, the penalty for slipping up on them is a one-year ban on fundraising, another virtual death-sentence for young startups. Because startups rely on the broader ecosystem to succeed (it takes a village to bring a startup to exit or IPO), it is irresponsible to pull startups in a direction that taints them with such risk. We aren’t anti-general solicitation; we’re simply calling for more clarification from regulators and agreement from the ecosystem to ensure startups and investors are protected before jumping in.From the investor standpoint, we're also concerned that general solicitation is currently being used to raise money under investment terms that investors may not fully understand. For example, we have already observed many instances where opportunities made available this week via general solicitation are being offered at different terms compared to what institutional investors like FundersClub are buying in at or seeing privately, with no disclosure made to the public investors that they are receiving worse terms. General solicitation has merits but the process will need to be carefully managed to protect both startups and investors in order to lead to sustainable wins.
    OUR ACTIONS

    We are in dialogue in Washington DC, in Silicon Valley, in Silicon Alley, with VCs, incubators/accelerators, angel groups, founders, lawyers, and others to arrive together at an ecosystem consensus before suggesting that public fundraising and investing is advisable for investors or startups.At times you may notice we are quieter than others--we like to talk softly while carrying a big stick. I hope you know we are always working tirelessly, often behind the scenes, to advocate for the community’s best interests.I'm very humbled by what the FundersClub community of investors and founders has accomplished to date as we continue to responsibly chart new territory. I look forward to funding the future together with you and to understanding how our team can continue to best serve you.Regards,--Alex
    ---
    Alex Mittal
    Co-founder and CEO
    Join TheHidden Content , and Invite your friends.

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