Letting Investors Know About Your New VentureOur expert explains how to publicly reach out to investors within the parameters of the JOBS Act.
ByJay Turo•
Opinions expressed by Entrepreneur contributors are their own.
I have a business idea and I am ready to start talking with investors. Is it legal to publicly solicit possible investors to my business via different print or digital media, such as email newsletters and social media?
As of this year, yes, but with an important caveat. Last year, the Security and Exchange Commissionlifted the 80-year banon "general solicitation," which had prohibited entrepreneurs from publicly discussing private investment offerings. A key caveat is that the only investors allowed into a funding round areaccredited investors, with their income or their net worth verified by a specified third party.
Related:Fundraising 101: The First Timer's Guide to Pitching Investors
