Rule Crowdfunding Changes

The United States Securities and Exchange Commission recently announced some substantial changes to “harmonize and improve” what they called a “patchwork” of rules pertaining to how companies can raise funding from the public — both accredited and un-accredited investors.

This action did not get much play in the press, but I spotted it and read it carefully. There is a lot of good news, but for the entrepreneur set there is a real gem.

Here is a link to their press release (an extremely  difficult document to read and understand):

SEC Harmonizes and Improves

The bottom line is this: a company can now raise up to $5,000,000 (versus the prior $1,070,000) via a web based fundraising campaign with a registered firm without having to file the usual substantial SEC required registration filings. [You have to make prudent disclosures as you would in any offering, but this is a simpler, easier, bigger deal.]

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Fundraising developments

Big Red Car here.  The Boss is back in town through the rest of the year — well, except for a visit to NYC and a couple of weeks of skiing in early December.  The Boss likes that skiing.  It’s already snowed in the Rockies.

This morning he was up early and had a conversation with one of his CEOs that he’s had about a thousand times — raising money.  It’s what CEOs do whether they like it or not.

Most CEOs do not like raising money.

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