Startups advertising to raise funding more than VC firms are, study says

  Mark Hatch, the CEO of TechShop, which successfully raised funding using general solicitation.

Mark Hatch, the CEO of TechShop, which successfully raised funding using general solicitation.

Raising venture capital is a major hurdle for every new startup. Often it’s a catch-22: the investor is looking for an idea that has shown measurable success, but that success can’t always be achieved without their help. As a result, founders are constantly searching for new ways to publicize their idea and gain users. A recent SEC ruling made it legal for private businesses to publicly share their intent to raise VC, and some companies are now using this as a form of advertising to gain attention. Has it paid off?