The Dodd-Frank Reform Act Makes Raising Private Equity More Difficult For Entrepreneurs

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The Dodd-Frank Wall Street Reform and Consumer Protection Act passed both houses of Congress and was signed into law on July 21, 2010. Unfortunately, one of the provisions of this recently enacted bill will make it harder for start-up and developing companies to raise funds from their friends and family, by decreasing the likelihood that friends and family can participate in a company's offering as accredited investors. This article will explain who meets the test to be an accredited investor and describe why a shrinking pool of accredited investors is trouble for the entrepreneur seeking to raise capital.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Clem Turner | Attorney Advertising

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