Positive Change for Start-up Investing

The Jumpstart Our Jobs Act (JOBS act) is a bill that will help start-ups grow, hire, and fundraise. The act will impact the rules for how start-ups are able to advertise and obtain investments. According to the bill, the SEC will veto an old ban on general solicitation of accredited investors. With the lift of this ban, start-ups are now allowed to advertise everywhere, including billboards and commercials.

Under the new JOBS Act start-ups are now able to openly advertise their need for funding through billboards or print ads. Before businesses accept money, they must verify that the investors are accredited. Potential investors are now required to reveal income, assets, financial statements, and fill out a form through the SEC. It is important that potential investors analyze a company’s article of incorporation, which includes tax returns, audit reports, legal tax bills, and personal property bills. All of these new ideas have been a long-time coming and as long as start-ups continue to voice their opinions, change will continually happen.

 

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