The Startup Accelerator Wars [INFOGRAPHIC]

The Startup Accelerator Wars [INFOGRAPHIC]

dashburst.com – Are you an entrepreneur or small business owner? On September 23, 2013 a new law in the U.S. allowed, for the first time in 80 years, startups to tell the world they are raising money whether through their blogs, email and social campaigns. The process, officially known as general solicitation, is an official declaration to the public that you are trying to raise funds for an organization. Though startups can let the public know they are raising money, they are only allowed to strike deals with private and accredited investors. In order for a company to “go public” and actually sell shares to the everyday investor on an open stock exchange like the Nasdaq, it would first have to file for an Initial Public Offering (IPO), which comes with significant overhead costs and typically only occurs when companies need more than 500 private investors (requiring it to go public by law) or want to accelerate their financing.