What You Need to Know About Raising Money After the SEC Ruling (Infographic)
If you are hoping to raise money from investors for your startup, an SEC ruling this week will make that process much easier than it has been. But you'll also need to know about new forms and deadlines.
The startup fundraising landscape saw its most significant change in eight decades when the Securities and Exchange Commission voted to lift the ban on general solicitation, a move which allows entrepreneurs to tell potential investors that they are seeking funding for their companies. While a boon to entrepreneurs, it also requires getting up to speed on the new rules, timelines and necessary paperwork. Fifteen days before they begin general solicitation, entrepreneurs will need to file a Form D, notifying the SEC of their intentions to advertise. Also, within 30 days of the completion of their fundraising, entrepreneurs will have to amend their paperwork with the SEC.
The following infographic by crowdfunding portal Fundable details the changes the SEC's ruling will have on startups and entrepreneurs.
Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.