Startups can now solicit investments with some restrictions

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Author: Niko Pifferetti
Publisher: Independent Florida Alligator
Date: September 26, 2013

For many entrepreneurs, persuading investors to fund startup companies has always been a struggle, but a federal law that took effect Monday and that’s expected to impact Gainesville, may make it easier.

Startups can now solicit investments with some restrictions

Startups can now solicit investments with some restrictions

The law, Title II of the Jumpstart Our Business Startups Act of 2012 (JOBS), amends a law from 1933 that made it illegal for companies to use mass communication to solicit potential investors, said Tanya Prive, a contributor to Forbes.

Now, companies can put out print media and TV advertisements, and even post on social media to spread the word that they’re looking for investors. Read more here.

 

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