Startups can ask investors for cash through Twitter
Your favorite internet startup might not just be using Twitter for business news and sales pitches in the near future — the US Securities and Exchange Commission has greenlit using the social network to drum up interest in future stocks and debt offerings. This only works for small outfits raising less than $50 million per year, but it should do a lot to help these young companies get funding when many venture capitalists thrive online. While this probably won’t be a make-or-break matter for many companies, it shows that the SEC is aware that stuffy official filings will only get you so far in the internet era. Besides, it’s fun to think that a 140-character Twitter spiel may be enough to jumpstart the next big tech firm.
Filed under: Internet
Source: Bloomberg
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