JOBS Act

Title II – General Solicitation

What is general solicitation?
Can I generally solicit my Deal?
Does Crowdfunder allow for general solicitation?
What regulations do I need to comply with to generally solicit my Deal?
Does Crowdfunder verify that my investors are accredited?
What if we do not want to generally solicit our Deal?
Can I raise money from unaccredited investors?
Are there any limitations that come along with Title II?

Title III – Crowdfunding

Is Title III of the JOBS Act Passed yet?


What is general solicitation?

General solicitation allows private companies to publicly advertise that they are fundraising. This allows startups, social enterprises and any early stage companies to market their raise to investors beyond their personal networks on platforms like Crowdfunder and various other mediums such as social media, print advertising, etc. Learn more.


Can I generally solicit my Deal?

Yes. As of September 23, 2013 with the passing of Title II of the JOBS Act, you have the option to generally solicit your raise. Seek guidance from your lawyer to make sure you are in compliance with the current SEC regulations. Also, make sure to check out our Public Fundraising Guide, which outlines how to raise funds publicly.


Does Crowdfunder allow for general solicitation?

Yes. You are now able to raise funds publicly on Crowdfunder.


What regulations do I need to comply with to generally solicit my Deal?

With the new regulations comes new standards when verifying that a potential investor is accredited. You now need to take extra ‘reasonable steps’ to verify that the investor is accredited before accepting their investment.

If you choose not to raise funds publicly, then you only need ‘reasonable belief’ that the investor is accredited.


Does Crowdfunder verify that my investors are accredited?

To be an Accredited Investor on Crowdfunder you must fall into the certain criteria laid out by the SEC. We have a self-verification questionnaire that all Accredited Investors must fill out. However, we do not take extra reasonable steps to fulfill the verification. Issuers are responsible for properly documenting the reasonable steps they’ve taken to determine the investor is in fact accredited.


What if we do not want to generally solicit our Deal?

That’s perfectly fine. You may still fundraise on Crowdfunder under Reg D 506(b) exemption and have a private Deal Room on Crowdfunder where only Accredited Investors will have access. Public fundraising is an option for companies looking to expand their reach to the general public.


Can I raise money from unaccredited investors?

Not yet. Until Title III of the JOBS Act gets implemented, you will not be able to raise funds from unaccredited investors.


Are there any limitations that come along with Title II?

Rule 506 states “an issuer may raise an unlimited amount of capital from an unlimited number of accredited investors”, according to the SEC Fact Sheet. However, there can’t be any non-accredited investors investing in your raise if you want to use Title II General Solicitation.


Is Title III of the JOBS Act Passed yet?

No, Title III of the JOBS Act is not yet passed. We predict that Title III will be enacted by the summer of 2014.