Will SEC’s New Rules on Marketing be a Boon for Start-Ups or a Risk for Investors?

By Dina ElBoghdady

The ads may start coming in the next few months through e-mail, on billboards, even via a passing reference on Facebook — companies looking to give you a chance to invest on the ground floor of a start-up that could hit it big.

The tantalizing offers may be legitimate or pie-in-the-sky schemes, and that’s the messy reality that federal regulators must address as they craft new rules that will fundamentally change how private offers are marketed to potential investors.

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