Most startups conduct seed financing under a rule promulgated by the Securities and Exchange Commission called "Regulation D", which exempts companies from registering an offering with the SEC provided that the company meets certain conditions. This article explains why one of these conditions, a ban on "general solicitation", has become increasingly obsolete due to the rise of the internet, and calls attention to a bill currently under Congressional consideration which would remove this restriction from Regulation D's conditions.
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General Solicitation: An Update