With the lifting of the ban on General Solicitation, startups may essentially shout from the rooftops that they are looking for funding — meaning the battle for investment dollars may get more challenging. Most investors seem to favor the lifting of the ban, but have concerns about the burden that the rules place on ventures. (For example, verifying accredited investor status.) There are also concerns about penalties that could be levied against ventures for inadvertently failing to fully and properly comply with the new law. Consequently, most observers advise entrepreneurs to proceed with caution when navigating these uncharted fundraising waters now that the ban has been lifted.
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