Disclosures

  1. SeedInvest’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own DD. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  2. SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  3. Diversification is only across multiple early-stage investment opportunities within the asset class. There is no guarantee that this program will lead to a well-balanced portfolio of companies across industry types or stages across the asset class. In addition, enrolling in this program will not lead to diversification across your entire investment portfolio. In order to achieve diversification, we do not recommend you allocate more than 10% of your entire investment portfolio to alternative assets.

  4. Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.

General Solicitation Rules Published

 
 

On July 12, the SEC voted 4-1 to lift the ban on general solicitation for securities offerings.  The rules have been published today (July 24) in the Federal Register meaning that general solicitation will be legal on September 23.

Interestingly, the new proposed Advance Form D rules and general solicitation filing rules will not be in effect when general solicitation goes live.

The proposed D rules are in a 60 day comment period and would take at least 30 days after completion of the comment period in order to become effective.  More likely, the SEC will take some time to review the comments before issuing a final rule.

The result is that there will be some time period, probably between 30 and 90 days, where companies will be able to use general solicitation with no new Advance Form D filing or any requirement to file general solicitation materials.

Companies will be able to advertise at will, subject to taking reasonable steps to verify accredited investor status of their purchasers.

Companies may decide to take advantage of this window to get their message out while not being subject to the new requirements.

What do you think?  How do you think companies can take advantage of this interim period?

 

This post was written by James Han on July 24, 2013

Raise a Round

A streamlined fundraising process for companies at every stage.

Choose how much you’d like to allocate to startup investing today.