SEC Allows Tweeting and Social Media for Fundraising
- Private companies raising up to $50M got the green light from the SEC to use social media to promote their fundraising to investors
Following the passing of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term A+ of the JOBS Act that went into effect earlier this month, private firms were given the ability to raise up to $50 million in funds from non-accredited investors. The main offshoot of the regulation is the widened base of investors now able to participate on equity Crowdfunding Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Read this Term platforms in the US.
As part of the new rules, the SEC has also passed guidelines to allow firms to use social media to market their fundraising goals and solicit new investors. First reported on Bloomberg, the rules are for funding deals up to $50 million of either equity or debt sales. Similar legislation exists in the UK and Europe, of which Twitter has become a popular method for startups and crowdfunding platforms to announce and provide updates on the funding campaigns.
For startups, the ability to use Twitter and other social media sites enables firms to target potential investors who have shown an interest in either investing in the products and services being marketed by the company. It also allows them to pitch their funding campaigns to influencers who could be critical to promoting the deal to their followers.
Overall, the rules for promoting private fundraising occur as global financial regulators have been reacting to the use of social media as a voice of communication of investments. Other examples where the SEC and other financial supervisors have created guidelines, include the dissemination of information by public companies using social media feeds, as well as the promotion of investment advice by banks and brokers.
Following the passing of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term A+ of the JOBS Act that went into effect earlier this month, private firms were given the ability to raise up to $50 million in funds from non-accredited investors. The main offshoot of the regulation is the widened base of investors now able to participate on equity Crowdfunding Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Read this Term platforms in the US.
As part of the new rules, the SEC has also passed guidelines to allow firms to use social media to market their fundraising goals and solicit new investors. First reported on Bloomberg, the rules are for funding deals up to $50 million of either equity or debt sales. Similar legislation exists in the UK and Europe, of which Twitter has become a popular method for startups and crowdfunding platforms to announce and provide updates on the funding campaigns.
For startups, the ability to use Twitter and other social media sites enables firms to target potential investors who have shown an interest in either investing in the products and services being marketed by the company. It also allows them to pitch their funding campaigns to influencers who could be critical to promoting the deal to their followers.
Overall, the rules for promoting private fundraising occur as global financial regulators have been reacting to the use of social media as a voice of communication of investments. Other examples where the SEC and other financial supervisors have created guidelines, include the dissemination of information by public companies using social media feeds, as well as the promotion of investment advice by banks and brokers.