In addition to the emerging growth company and crowd-funding provisions, the new law removes SEC regulations preventing small business from using advertisements to attract investors and raises the number of shareholders a company can have before it must register with the SEC from 500 to 2,000. This may be particularly relevant for our Networks users, who will be able advertise their Networks to reach a much broader audience.
In 2011, equity-based crowfunded projects like those currently on Grow VC raised $20.5 million, five times more than in 2010. We expect 2012, and especially 2013 to be massive improvements on these numbers. The SEC has 9 months to craft all of the nitty-gritty of the regulations, and Grow VC will be there every step of the way ensuring we are the first to be compliant with the new laws and generate maximum value for our users.
See on www.growvc.com