Venture Capital & Emerging Companies Alert: Removing the Ban on General Solicitations Gaining Momentum
1/19/2012
By Daniel I. DeWolf, Samuel Effron, and Garrett Johnston
Privately held small businesses may soon face one less obstacle when it comes to finding potential sources of capital. Currently, capital raising efforts for these businesses, and anyone acting on their behalf, are constrained by a prohibition under the Securities Act of 1933 on general solicitation and general advertising for all private offerings. But in recent months, the House of Representatives and a new advisory committee to the Securities Exchange Commission have proposed that for most private offerings this prohibition should no longer apply. A removal of such general solicitation restrictions would clearly facilitate the raising of early-stage capital “on-line.”
» Click here to read the full alert.
