Implement the lift in the ban on general solicitation for small businesses without delay.
Revising the general solicitation rule will also play a huge role in the exposure of these deals.
The amendments will remove the long-standing prohibition against general solicitation and general advertising contained in Rule 502(c) of Regulation D.
FORBES: Floodgates Set to Open for Private Securities Offerings (and Hedge Funds are Included!)
As a quick refresher, the general solicitation provision will allow companies raising money to broadly advertise their raise to customers, consumers, suppliers, etc.
While the world awaits the proposed rules for Title III, the more important delay is in enacting the already proposed rules for Title II, general solicitation.
The SEC is intends to revise Form D to add a new check-the-box for issuers, who will be able to indicate whether they are using general solicitation or general advertising in their Rule 506 offering.
FORBES: Floodgates Set to Open for Private Securities Offerings (and Hedge Funds are Included!)
Thus, there is clearly an efficient market for start-up tech companies with sound business models to raise capital today, without the need for the publicity that the removal of the general solicitation ban will afford them.
FORBES: Lifting The Ban On "General Solicitation": Guess Which Startups (And Investors) It Helps?
While the removal of the general solicitation ban is an important piece of the Act, the companies who will benefit the most from it are not the darlings of Silicon Valley, but the businesses of mainstream America.
FORBES: Lifting The Ban On "General Solicitation": Guess Which Startups (And Investors) It Helps?
Another important aspect of the JOBS Act is the lifting of the prohibition on general advertising and general solicitation that has since 1962 been essential to characterize an offering as private and not subject to registration under the U.S. Securities Act of 1933.
FORBES: With the JOBS Act, Congress Throws Open the Door for Private Stock Offerings
While some experts are predicting that the removal of the general solicitation ban will help spawn the next Facebook or Google, tech companies will actually be the companies least affected by the change in law because the private capital markets for tech are already extremely efficient.
FORBES: Lifting The Ban On "General Solicitation": Guess Which Startups (And Investors) It Helps?
This piece of legislation would remove a severe restriction on raising capital by eliminating the general ban on solicitation for accredited investors.
FORBES: Washington And The Markets Unite To Foster Small-Company Growth
Officially signed into law in April, the SEC is now mandated to make public solicitation legal, as well as allowing the general public to invest in private companies (both of which are currently illegal).
The original investigation focused on whether Lisa Gomer, USAID general counsel, may have "wired" a contract last May so the winner of the solicitation would be the agency's retiring chief financial officer, David Ostermeyer.
According to one industry insider, the real amount of time available when other features of the solicitation are factored in is 18 months, which is a lot less time than General Motors would spend on developing a new vehicle concept like the Volt.
The purpose of this notice is to provide general information on the requirements for the procurement process and to inform interested suppliers how to obtain a copy of the Solicitation Documents.
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