Implementation of the JOBS Act is moving forward piece by piece, and the SEC is completing its arduous task of creating the rules that will govern this new frontier.
Tampa, FL (PRWEB) October 21, 2013
Crowdfunding expert Kendalll Almerico, CEO of growing crowd funding website http://www.ClickStartMe.com discussed the market uncertainty surrounding the implementation of a key JOBS Act component, the repeal of the ban on general solicitation.
“Implementation of the JOBS Act is moving forward piece by piece, and the SEC is completing its arduous task of creating the rules that will govern this new frontier,” said JOBS Act expert Kendall Almerico. “But the JOBS Act’s lifting of the general solicitation ban has created some new issues.”
Specifically, Almerico notes, the new rules require securities issuers to file paperwork with the SEC 15 days before attempting to solicit or raise funds. “This is a new requirement that is a roadblock to the normal fundraising process, where typically two weeks of waiting will often kill a deal.” Almerico, and others, feel this requirement flies in the face of the very reason the JOBS Act was created by making the process more difficult, rather than streamlined.
Almerico notes that the JOBS Act was created to lessen the restrictions of 80 year old laws requiring all securities to be registered with the SEC, an expensive and often complex process for small companies. The first part of the JOBS Act to be implemented 30 days ago removed the long-term ban on general solicitation of a private equity offering. “In other words,” Almerico says, “Now the JOBS Act allows you to legally advertise that you are selling securities to raise funds for a business, which you have not been allowed to do for 80 years.” But, Almerico notes, you can only do so if you follow the new strict rules and limit the solicitation to accredited investors.
“General Solicitation is the first step in what equity-based crowdfunding is all about and allowing everyday investors to finally be able to take part in booming startup revolution in a way only the wealthy have been able to,” says Almerico. “When the rest of the rules go into place, the real boom in startups will occur.” Until this point, Almerico notes, crowdfunding has been restricted to a rewards based crowdfunding model. “The change in these laws is one of the reasons we created http://www.ClickStartMe.com, and why we are so excited to unveil our new equity-based crowdfunding model when the rest of the JOBS Act is implemented.”
About Kendall Almerico:
Kendall Almerico is a nationally recognized crowdfunding expert who has appeared in USA Today, Huffington Post, the New York Daily News, Business Insider, and hundreds of newspaper, blog, radio and television interviews. Almerico is also CEO of http://www.ClickStartMe.com, a crowdfunding site that provides individuals and businesses with an easy-to-use website to raise funds through online crowd funding. Almerico is also the founder of http://www.CrowdItForward.com, a charity-based crowd funding site that performs “Random Acts of Crowdfunding” and raises money for people in need through a 501(c)(3) charitable foundation.
Almerico is available for interviews and speaking engagements and may be reached by e-mailing media(at)clickstartme(dot)com or by calling 813.410.4658.