What does Title II of the JOBS Act allow companies to do?

Title II of the JOBS Act, also known as the Jumpstart Our Business Startups Act, specifically allows companies to engage in general solicitation and advertising when they are raising capital, provided they are only soliciting investments from accredited investors. This landmark change aimed to increase access to capital for startups and small businesses by enabling them to promote their fundraising activities through various means, including social media, websites, and public events.

The provision is significant because it opens up opportunities for companies to reach larger audiences and potentially attract more investment than they could through traditional means, where advertising was generally prohibited. By allowing advertising to occur, Title II of the JOBS Act fosters innovation and entrepreneurship by enabling companies to connect with a greater pool of accredited investors who may be interested in supporting new ventures.