Understanding the JOBS Act & General Solicitation
Get acquainted with the regulations impacting the private investment market.
Passed in 2012, the Jumpstart Our Business Startups (JOBS) Act created new exemptions impacting entrepreneurs and investors. There were seven titles to the JOBS Act, but two were of particular importance to the private finance community: Title II and Title III.
- Title II, which lifts the ban on the public advertising (General Solicitation) of private investment opportunities, was implemented in September 2013.
- Title III, which would enable non-accredited investors to access investment opportunities through 'equity crowdfunding,' has yet to clear the SEC's rulemaking process.
Under the Title II regulations, General Solicitation has created a new online private investing industry that is making the private finance market more accessible and transparent for individual investors.