What End to General Solicitation Ban Means for Tech

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Sept. 23 (Bloomberg) -- CircleUp's Rory Eakin comments on what lifting the 80-year old ban on general solicitation means for startups. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Growing businesses.

How important is it?

It is a big day, the first time in 80 years that investors and companies can come together more efficiently.

Let me be the senate that i actually am.

-- cynic i actually am.

There were so many frauds, promoting companies that barely existed.

How does this prevent that from happening.

The law is still only credited investors.

Folks that meet the high standards.

The other thing is the proliferation of information available to the average investor.

What you can do today was not possible in 1933, checking out their profile and seeing them on the web.

We work with only companies that have an existing product on the shelf.

You are now able to get more information about that through websites.

Because the internet, it is now buyer beware.

Investors have always been able to invest, it doesn't change how that investment happens.

Just how i can advertise.

Defined an accredited investor.

The most important for individuals is $200,000 in annual income.

$1 million in net assets.

How many american adults meet that definition?

About 9 million people.

9 million can be solicited directly without having to file documents in advance?

That is right.

There is not a requirement for advance filing.

There are rules put forward but it has not yet been finalized.

Initially, companies will be leveraging resources that they have that are cheapest and most effective.

Still a small selection of the american population that is accredited.

Social media, twitter, linkedin, starting that conversation.

The details in the offering will be together in one place.

Investors can compare them, but you to spark a conversation for the first time.

I hope it turns out better than it did years ago.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change