A startup can now post a Twitter message about its stock or debt offering to gauge interest among potential investors. The SEC's latest endorsements of social media for company announcements applies to companies looking to raise up to $50m.
The SEC announcement continues the agency’s trend of warming up to social media, which began two years ago when it approved the use of posts on Facebook and Twitter to communicate corporate announcements such as earnings. “It’s a brave new world,” said Joe Wallin, a Seattle-based attorney who advises startups at Carney Badley Spellman PS. “The way securities have been distributed and sold has never involved a lot of media.”