Letting Investors Know About Your New Venture
I have a business idea and I am ready to start talking with investors. Is it legal to publicly solicit possible investors to my business via different print or digital media, such as email newsletters and social media?
As of this year, yes, but with an important caveat. Last year, the Security and Exchange Commission lifted the 80-year ban on "general solicitation," which had prohibited entrepreneurs from publicly discussing private investment offerings. A key caveat is that the only investors allowed into a funding round are accredited investors, with their income or their net worth verified by a specified third party.
Related: Fundraising 101: The First Timer's Guide to Pitching Investors
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