New York, N.Y. (PRWEB) July 11, 2013
The SEC’s decision to lift its ban on general solicitation for private offerings is “independence day” for millions of accredited investors who thus far have not had sufficient information or opportunity to invest in private placements for early stage healthcare companies, said Greg Simon, CEO of Poliwogg, an online marketplace that matches young companies with sophisticated investors.
“With this ruling, young, promising companies and the firms that represent them will have the ability to make public that they are seeking funding. This will provide exciting new opportunities for investors, and fuel innovation for new cures, reduced costs and improved efficiencies in healthcare delivery,” said Simon. “With the US population over 65 set to quadruple over the next 25 years and Medicare/Medicaid already under stress, this is one of the most important policy decisions of the decade.”
The JOBS Act, including the change in SEC rules on solicitation, has the potential to save many companies from the “valley of death,” providing a “bridge of life” to funding sources – with the potential to carry economic growth for the next several decades, added Simon.
According to the Milken Institute, the vast majority of US accredited investors have never invested in a private placement, due to a lack of information, contacts or connections with financial services providers. The JOBS Act, signed into law by President Obama in April 2012, allows new opportunities to invest in small start-up companies that previously were available only to the wealthiest Americans. By expanding the limits on what small public companies can raise and the number of investors they can have, and by allowing general advertising of private investment opportunities, the JOBS Act makes it possible for millions of Americans to invest directly in the future.
In his speech announcing the JOBS Act in April 2012, President Obama said: “… for start-ups and small businesses, this bill is a potential game changer. ... Because of this bill, start-ups and small business will now have access to a big, new pool of potential investors -- namely, the American people.”
Through its online marketplace, Poliwogg intends to make available private placements in far smaller units than traditional private equity deals. Accredited investors will be able to invest in units as small as $20,000. More information is available at http://www.poliwogg.com.
Based in New York, Poliwogg facilitates capital formation through the use of social media and online investment methods. The company offers an online marketplace that matches young companies with sophisticated investors, allowing them to have meaningful participation in early and mid-stage financing of new enterprises, particularly in healthcare and the life sciences and community enterprise. For more information, visit http://www.poliwogg.com. Follow Poliwogg on Twitter @poliwoggpond, and on LinkedIn .
Gregory C. Simon, CEO
Private investment marketing and other broker-dealer services are currently offered through a partnership with SDDCO Brokerage Advisors, LLC, Member FINRA/SIPC (“SDDCO-BA”). Poliwogg and its affiliates are independent and unaffiliated with SDDCO-BA. All such services offered by Poliwogg-associated persons are done so in their capacities as registered representatives of SDDCO-BA.