The JOBS Act, general solicitation and the pickle man
When President Obama signed the JOBS Act in 2013 he called the law — aimed at helping startup firms raise capital — a “game-changer.” Opponents said the law rolls back investor protections.
One provision aimed at helping private companies and business owners–implemented last month–lifts the ban on what’s known in the investment world as “general solicitation.” Now, for the first time in decades, private companies and business owners will be allowed to take out public advertisements to attract potential investors.
Rick Field is the founder, CEO and “Chief Pickler” of “Rick’s Pick’s,” a pickle company that started small but has grown into a national business.
NewsHour spoke with Field about what the new rules regarding general solicitation mean to his business.
View our complete report on start-ups on raising capital online from private investors:
Special correspondent Karla Murthy reports on new potential uses of ‘crowdfunding’ – raising a large pool of money from many small contributions online. Thanks to the bipartisan JOBS Act, signed by President Obama last spring, entrepreneurs will soon be able to use this method to raise investment capital.
Supporters think the provision could be a key to spurring more entrepreneurship, economic growth, and job creation. But is it a good idea for investors?