The Wall Street Journal reported that the SEC (Securities and Exchange Commission) has lifted a ban that resulted in a change of regulations.  The change now allows small private companies to publicly offer investment opportunities with out having to register an IPO.

Since the ban has been lifted, smaller businesses have taken full advantage of social media, and created a brand new channel to reach potential investors.  Some companies have chosen to use popular social networking sites such as Facebook and Twitter, where as other companies have chosen to use business-oriented websites such as LinkedIn to appear more authentic to investors.  This exposure will be beneficial to companies as it will help to increase key partnerships, key activities, and key resources.

The dissolution of the ban emphasizes the power that social media has in the business world as small business are now able to propose their investment opportunities to a broader base of investors and makes it easier for entrepreneurs to connect with investors.

Resources:

http://www.venturegiant.com/images/ent-inv.jpg 

http://online.wsj.com/article/SB10001424052702304795804579097500555715202.html