It’s been about eight months since the Jumpstart Our Business Startups (JOBS) Act general solicitation rule went into effect. Now companies are starting to raise money on their own websites as permitted by the act, in some cases easing the process by using a plug-in from Alphaworks.

For example, Quibb, a social network for professionals that launched a year and a half ago, is using the plug-in to let accredited investors among its users buy equity in the firm, according to a post on Gigaom. Quibb’s founder has also lined up traditional seed funding, and indeed it likely will be common for companies to use the general-solicitation rule to acquire supplemental funding.

Under the JOBS Act general solicitation rule, small companies can advertise a private placement broadly — on a website, Twitter or a sign at the local grocery store — as long as they sell equity only to accredited investors. The Alphaworks plug-in makes it easier to solicit the investments through a widget companies can embed on their website.

Also, equity crowdfunding platform SeedInvest recently launched a Series A funding round on its site. It previously secured $2 million from venture-capital firms, including Scout Ventures and Great Oaks Venture Capital. “We have almost 3,000 individual investors, and you can imagine it would be very challenging for a company to negotiate terms and valuation with all those people,” says SeedInvest CEO Ryan Feit. “Once a company gets a nod of approval from a lead investor, [the plug-in] makes it easier to open it up for individual investors to join the round at the same terms.”

When the JOBS Act rules on crowdfunding go into effect, likely this year,
firms will be able to raise up to $1 million annually from non-accredited
investors.
For more on the JOBS Act and general solicitation, see CFO’s explainer.

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One response to “Per JOBS Act, Small Firms Raise Funding on Their Websites”

  1. May 1st Webinar – How to Finance Your Film With Equity Investors on the Internet

    No more need to beg for donations on Kickstarter! Investments are much more appealing than donations. There are approximately 9 million accredited investors in the United States alone. With the passage of the JOBS Act, filmmakers can now get the funding they need from accredited equity investors on the Internet. This webinar will show you how.

    Thursday, May 1, 2014 from 1:00 -2:30 PM

    To register with a 20% Discount, use the special code MSVIP:

    https://www.eventbrite.com/e/how-to-finance-your-project-with-equity-investors-on-the-internet-tickets-11276188383

    NOTE: WEBINAR WILL BE RECORDED AND DOWNLOADABLE LATER.

    This webinar will include:

    • How to create a powerful investment package that will attract even the most sophisticated investors
    • The elements you will need to market your film package online
    • Valuable tools and special techniques to attract investors to your offering
    • Where to search for potential online investors
    • Legal documents you will need to accept investments from accredited investors
    • Crowdfunding you can do NOW in certain states – Georgia, Kansas, Michigan, Wisconsin and Maine with several more pending
    • Expected new SEC rules that will create even better methods of fundraising
    • The new SEC rules and regulations for soliciting investors on the Internet:
    ◦ SEC Rule 506(b) & SEC Rule 506(c): covers SEC rules for investments that you receive from accredited investors.
    ◦ JOBS Act Title III (Coming soon!): when SEC adopts new rules, covers rules for raising up to $1MM from both accredited and non-accredited investors
    ◦ JOBS Act Reg A+ (Coming soon!): when SEC adopts new rules, will simplify the small-cap public offering and allow raises up to $50MM

    WEBINAR SPEAKERS

    Sara Hanks, co-founder and CEO of CrowdCheck, is an attorney with over 30 years of experience in the corporate and securities field.

    Anne Marie Gillen, CEO of Gillen Group LLC, is a financing consultant, veteran film producer, and executive coach to independent film producers.

    Gene Massey, MediaShares CEO, is a consultant and expert in CrowdFinancing & Crowdfunding solutions for marketing and transacting online equity investments.

    To register with a 20% Discount, use the special code MSVIP:

    https://www.eventbrite.com/e/how-to-finance-your-project-with-equity-investors-on-the-internet-tickets-11276188383

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