SEC

SEC Ruling Changes Startup Funding

 

With the recent announcement that it would now allow startups (and other investments) to publicly market their offering, the SEC has opened a whole new world of opportunity in startup funding.

One of the startups we work with is a great example. It formed when a group of passionate people got together and rallied around an idea. In this case the idea was an application of a new technology with serious potential. We spent significant time setting up shop and have worked hard to gain traction in the short time we've been working together.

Soon after we formed our business, we met with our attorney who gave us a lesson on how traditional, venture capital was raised. When he explained the SEC's 81 year old ruling that prohibits startups from advertising their offering, I was gobsmacked.