The JOBS Act: What Investors Need to Know

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On Monday, a new law takes effect that could change the face of startup investing.

The Jumpstart Our Jobs Act (a.k.a. the JOBS Act, which has nothing to do with jobs) is a bill that President Obama has called “game-changing” for its ability to help startups grow, hire and raise funding. Perhaps the most valuable (and least understood) part of the law is how it will alter the rules of startup advertising and investing.

Per the bill, the SEC will lift a 80-year ban on general solicitation of accredited investors (accredited refers to anyone with a net worth of $ 1 million, annual income of $ 200,000 for the last two years, or $ 300,000 combined with their spouse). This means startups can advertise everywhere — from billboards to television commercials. Read more…

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