CLEVELAND--(BUSINESS WIRE)--FlashStarts, a startup accelerator in Cleveland, Ohio has scheduled its Demo Day for September 23, 2013 to accommodate the new Securities and Exchange Commission’s regulations allowing general solicitation. The 10 new startup companies in the accelerator’s inaugural class will present to the world in a live Internet broadcast to commemorate these historic regulations.
According to the SEC’s regulations, startups can now publicly advertise that they are raising funds from accredited investors.
"In most communities, raising startup money has been a process stuck in the 19th century, limited to fundraising from friends and a few local angels," said FlashStarts CEO and Co-founder Charles Stack. “With these new SEC changes, entrepreneurs can now use all modern marketing techniques to connect with the nearly nine million accredited investors across the U.S.”
The regulations will have a significant impact on startups by removing the geographic barriers to capital that have traditionally made it more difficult for startups outside areas like Silicon Valley, Boston or New York to grow and succeed.
On signing the JOBS Act last year that enabled these new SEC regulations, President Obama said, "[S]tartups and small businesses will now have access to a big, new pool of potential investors — namely, the American people."
"As capital is allowed to flow to ideas and entrepreneurs—regardless of distance and location—the country will enjoy a true national rebirth of capitalism, along with job and wealth creation," said Stack.
While the SEC has loosened restrictions for advertising, the requirements for verifying accredited investors have increased dramatically. Issuers must now verify their investors’ accreditation status either by asking for a copy of the investors’ tax records or by receiving written confirmation from a third-party, such as a broker dealer.
One FlashStarts’ accelerator company, Crowdentials, has a solution to verify accreditation through its new Certified Accredited Investor (CAI) program. The startups in FlashStarts’ accelerator program will leverage Crowdentials’ solution to certify their potential investors and comply with the SEC regulations.
FlashStarts’ 2013 Demo Day will take place from 11:30 a.m. to 1 p.m. EDT on September 23, 2013. Guests can attend in-person at the NPR IdeaStream Westfield Theater in Cleveland, Ohio, or online via live Internet broadcast. In-person attendance is limited to 250 seats and virtual online attendance is limited to 2,500 viewers. To request a ticket or learn more, visit www.flashstarts.com/demoday.
FlashStarts is a Cleveland-based business startup accelerator and consultancy focused on unique and innovative uses of software and technology. FlashStarts has deep expertise in startups, Enterprise and Healthcare IT, mobile, digital publishing and media, and high-bandwidth applications. The FlashStarts model relies on rapid cycles of feedback and iteration, customized guidance from dedicated coaches, and an extensive network of top-tier, experienced mentors. For more information, visit www.flashstarts.com or follow FlashStarts on Twitter at @FlashStarts.