[CAF: Pay Attention. This is a market shifting event. There will be another shift coming this fall when the SEC promulgates rules that permit solicitation to non-accredited investors.]
By Ryan Tate
For all the transparency and disruption that startups have brought into the world, the process of funding them remains largely opaque and old-fashioned.
Money tends to come from exclusive, geographically concentrated networks of entrenched investors, and deals are driven largely through word-of-mouth referrals, the accumulation of various status markers, and a long series of often elliptical conversations and in-person meetings.
Related Reading:
SEC Amendments to the Securities Act
SEC’s New JOBS Act Rules: What Does It Really Mean?
Crowfunding Intermediary Regulatory Advocates
Special Solari Report: Jumpstart Our Business Startups (JOBS) Act of 2012
