Crowdentials’ Rohan Kusre in the Huffington Post
Rohan Kusre, COO and Co-Founder of Crowdentials, wrote a blog post for the Huffington Post about the nuances entrepreneurs who hope to generally solicit will face under the SEC’s regulating Rule 506(c).
The Dawn of Stock Marketing
With the introduction of general solicitation, entrepreneurs will be able to use a new exemption (Rule 506(c)) to target a large number of qualified investors at once via all manners of promotion and advertising. Everything from TV ad spots to Facebook updates to blog posts like this one are fair game for entrepreneurs to utilize during their fundraising rounds.
While this is game changing for entrepreneurs seeking funding as it increases their access to capital, the nuances of these regulations are likely to cause confusion… Entrepreneurs raising capital through general solicitation must now take “reasonable steps” to ensure their investors are accredited.
