{"id":235,"date":"2013-08-06T10:24:37","date_gmt":"2013-08-06T15:24:37","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=235"},"modified":"2020-01-22T12:19:06","modified_gmt":"2020-01-22T16:19:06","slug":"sec-lifting-the-advertising-ban","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/sec-lifting-the-advertising-ban\/","title":{"rendered":"Ban on General Solicitations is Creating Opportunity for Funding Portals"},"content":{"rendered":"
With the final changes on Rule 506 being issued, opportunities have been created for those looking to capitalize on them.\u00a0 As with any change there is a first mover advantage for companies and individuals that move quickly. The general solicitations ban is creating most definitely opportunity.<\/p>\n
While lifting the ban they did make one thing clear \u2013 Accredited Investors are the only ones able to participate in the private offering.\u00a0 Advertisements need to make this disclosure and firms need to verify the accreditation status of each investor.<\/p>\n
In order for an investment firm to realize the most benefit from the advertising ban being lifted, they need to have an aggressive online strategy.\u00a0 People use the internet to search for information on a daily basis.\u00a0 Most will use it to research a concept or idea prior to making a decision.\u00a0 Traditional investment firms and broker dealers have had to stay clear from advertising too much online or becoming an open knowledge center, simply for risk of violating Reg D.\u00a0 This puts them at a clear disadvantage in the online space.\u00a0 It has, however, created a unique opportunity for funding portals.\u00a0 Online sites that provide information to Accredited Investors, facilitate deal flow, and connect investors with broker dealers and investment firms have the most to benefit.\u00a0 By being able to directly advertise private offerings, these portals can negotiate contracts and partnerships with investment firms.<\/p>\n
Funding portals, that already have an online presence, can increase their efforts by providing additional information on individual investment opportunities.\u00a0 They can put up blogs pertaining to specific industries, legislation changes, and more.\u00a0 The more people that visit a funding portal, the more benefit to a broker dealer or investment firm.<\/p>\n
Changes to Rule 506 make it possible to use:<\/p>\n
The challenge with mass advertising is the ability to get in front of the demographic that can invest with you.\u00a0 According to the SEC changes only Accredited Investors may invest in private offerings issued under Rule 506.\u00a0 This means that many people will be exposed, but unable to participate, in your offerings.\u00a0 A lead list of Accredited Investors is still a good start to any marketing campaign as you can contact them via the phone, ask for their email and address, then build your own advertising database.<\/p>\n
For now we will wait to see what partnerships are established between funding portals and investment firms.\u00a0 Several broker dealers and investment companies will rise to the top, taking advantage of the new changes to Rule 506.\u00a0 The only question is, which ones?<\/p>\n
With the final changes on Rule 506 being issued, opportunities have been created for those looking to capitalize on them.\u00a0 As with any change there is a first mover advantage for companies and individuals that move quickly. The general solicitations ban is creating most definitely opportunity. The SEC lifted the advertising ban on general solicitations<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[63],"tags":[],"yoast_head":"\n