The SEC announced today that the ban on General Solicitation has been removed for small businesses seeking startup capital. The SEC has voted 4 to 1 to implement the most crucial section of the JOBS Act – section 201(a) – allowing further growth of the estimated 6 million businesses formed each year. This is the most aggressive change to startup fundraising in 80 years.
In April of 2012 the Jumpstart Our Business Startups Act (JOBS Act) was passed, part of a sweeping change to allow more startup companies to access a broader range of investors.
Fundable.com was launched a month later in May of 2012 to take advantage of this change. The leading platform enabling startups to connect with investors, Fundable has driven over $10 million in investment commitments to small businesses in the last 6 months alone.
Wil Schroter, Fundable’s CEO explains “Today is one of the most salient days for small businesses. A year ago when we launched Fundable.com, we had a vision for allowing any entrepreneur with an idea to raise startup capital quickly and efficiently online. Removing the ban on General Solicitation is major step toward this goal.”
Fundable is host to hundreds of small businesses and startups raising funds under the existing rules of privacy set out by current SEC regulations. Those companies include small businesses like Grapevine Brewery and Vocademy and high-profile tech media darlings like Ube, Uncharted Play, ZPM Espresso, Cregle, SticknFind, and iDevices.
Startups with great ideas can post their idea on Fundable and use their online profile to reach out to potential investors. These investors can communicate with the entrepreneur quickly and efficiently online, reducing the time and frustration of traditional fundraising.