JOBS Act and Rulemaking by the SEC - General Solicitation

Overview: The Jumpstart Our Business Startup Act (JOBS Act) was passed by Congress in 2012 to increase capital available to startups and provide an easier regulatory path for growing companies for successful exits. The act included a variety of initiatives, including an IPO on-ramp, increased maximum for "Reg A" IPOs, allowance of equity-based crowdfunding, and ability for issuers of private investments to use general solicitation to accredited investors.

In July 2013, the Securities and Exchange Commission released two final rules and one proposed rule related to general solicitation - and particularly how investor accredited investor status would need to be verified and the filings and reports issuers would be required to make in solicited offerings.  The final rules went into effect on September 23, 2013 and comments on the proposed rules closed on November 4 (although they continue to accept comments, particularly related to the definition of accredited investor as of June, 2014).  

Below are many ACA materials and other resources for all members of the startup community to help understand the issues and to get the word out about their potential harm to the innovation economy, but also provide a pathway for verification of the accredited investor status of members of "established angel groups":

ACA Guidance of Accredited Investor Verification:  What Membership in an Established Angel Group Says About a Purchaser

Tools and Templates for Members for Communication

ACA Messages and Op-Eds

ACA Webinars, Presentations and Webcasts on SEC Rules

The SEC Rules

Some of our Favorite Resources for Angels and Entrepreneurs

ACA's Activity Before the SEC Final Rules were Released (2012-2013)

ACA collected many helpful resources on the issue of general solicitation and "reasonable steps" for issuers to verify accredited investor status:

Below are additional resources on the JOBS Act and its potential implications on angel investors: