Have you heard of that JOBS (Jumpstart Our Business Startups) Act thing, part of which the Securities and Exchange Commission (SEC) is putting into effect Sept. 23? The answer should be yes, especially if you’re an entrepreneur, because it’s about to change the way you can get investing come Monday. As with any governmental regulations or legislation, making sense when reading the original text is near impossible. Luckily, you’re about to get an overview of the six most important things you need to know about the changes set to begin next week when Title II of the JOBS Act goes into effect. Less restrictions on soliciting investments – Seeking out investors has been a very regulated game, but monday that all changes. In keeping up with technology, investors can now solicit investments to companies however they like: via e-mail, on their website, or even on TV. This simply means, it’s easier for small businesses and investors to get in touch. They still have to be accredited, though – The SEC has kept the regulation that any investors of private companies must be accredited. As defined by the SEC, an accredited investor is “a natural person who has individual net worth, […]
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