Kendall Almerico, CEO of crowdfunding site ClickStartMe, recently commented on the JOBS Act ruling issued by the SEC that allows general solicitation of accredited investors under certain circumstances.
“While the SEC’s new JOBS Act regulations do not address the crowdfunding portion of the JOBS Act as we were all hoping, the fact that they are moving at all is good news,” the crowdfunding guru said.
The SEC ruling concerns “general solicitation”, or advertising, and will allow startups to begin soliciting accredited investors through social media, and other means that previously were illegal.
“While this shows that the SEC is starting to finally do what the JOBS Act mandates them to do,” Almerico says, “It also unfortunately shows that the SEC is not afraid to add new requirements that may actually make funding more difficult, instead of easier, as the JOBS Act intends.”
Almerico points out that the new SEC rules require companies that wish to advertise to accredited investors to file new and more extensive documentation with the SEC than before. But Almerico points out, it is still a step in the right direction.
“At least something is being done, finally,” Almerico notes. “The JOBS Act was made into law in April 2012. At this point, any progress on implementing it is good progress.”