LexisNexis® Legal Newsroom
JOBS Act: What Matters Most for Startups and VCs

The Jumpstart Our Business Startups Act (the JOBS Act), enacted in April this year, makes a variety of significant changes to securities laws, some of which relate to early-stage entrepreneurs, startup companies and venture capitalists concerned about fund raising with respect to their portfolio companies...

SEC Lifted Ban on General Solicitation: What Does it Mean in EB-5 Practice?

On July 10, 2013, the Securities and Exchange Commission (SEC) adopted a new rule under the JOBS Act, which repeals the prohibition on general solicitation for private securities offerings relying on Rule 506 of Regulation D exemption. This is certainly exciting progress for the capital raise in EB...

SEC Provides Interpretations on Rule 506(c)

As we’ve previously blogged , in July 2013 the SEC adopted rules that permit general solicitation and general advertising in connection with certain offerings of securities to accredited investors. Yesterday, to help the markets understand some common interpretative questions associated with these...

Why You Can’t Really Include Non-Accredited Investors in Rule 506 Offerings

One common misconception I encounter among startups is the idea that companies raising capital can include non-accredited investors in Rule 506[1] offerings. While it is technically true that a Rule 506 offering may include up to 35 non-accredited investors, what is often missed is that it is not really...