Starting today, May 16, 2016, four years after the JOBS Act was signed into law, this type of crowdfunding will finally become legal. Does that mean your friend will be able to solicit investment on Facebook? Not really.
Despite the fact that securities crowdfunding was intended to be a vehicle for this kind of grassroots capital raising, and despite the fact that it was supposed to be a no-frills, low-cost way for small businesses to leverage the internet, the final version that came out of Congress, and the final set of rules that came out of the SEC have created a very different process than its proponents initially envisioned. And asking for investment directly on Facebook is still not allowed.
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