It’s great news for small business owners and startup founders alike, because the SEC (the US Securities and Exchange Commission) has just changed its rules pertaining to the use of social media by small businesses, for purposes other than small announcements that pertain to their finances. Startups will now be able to tweet to solicit interest from investors without fearing the related SEC regulations.
Also Read: Top 5 Social Media Tips For Startups
The announcement came from the SEC which has for the last years, shown a lot of interest in helping new small businesses use social media since it has become such a big part of corporate communication.
If you like our stories, there is an easy way to stay updated:
Years ago, the SEC had allowed small businesses to use Facebook and Twitter for these purposes, as long as they inform investors to look there… the new rules open up many opportunities for small businesses who are “looking to raise as much as $50 million a year”. They are required though to include a link to a disclaimer that informs the reader that the company is not selling securities yet.
More from Twitter
Twitter has announced it is further expanding the availability of its Twitter Lite app to 21 more countries, bringing the …
Following an update to its API on August 1, Facebook no longer allows users to automatically publish Tweets and Retweets …
Only days after Facebook's stock took a record $100 billion tumble, Twitter's shares are also down 20% after the company's …