Startups are now able to post a Twitter message about their stock or debt offering to gauge interest among potential investors, Bloomberg Business reported on Friday. The announcement continues the Securities and Exchange Commission’s (SEC) 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. The SEC’s latest endorsement of social media only applies to companies looking to raise as much as $50 million a year. New small-business fundraising rules were approved in March, which increased the limit for capital raised to $50 million from $5 million to enjoy the perk of fewer required disclosures. The changes were required under the 2012 Jumpstart Our Business Startups Act, which deregulated fundraising rules for small businesses. Firms that use Twitter to solicit investor interest must include a link to a required disclaimer that says the firm isn’t yet selling securities. It’s not clear how many companies will take advantage of the higher fundraising cap. Fewer than 30 offerings were made from 2012 to 2014, when the limit was $5 million.
