7 Hidden Legal Disasters – Fundraising! So you want (or need) to raise money…now what?
Can I advertise that my company is fundraising on our Facebook page?
Probably not – the rules allowing for “general solicitation” of a fundraise are very specific and a violation can result in an automatic loss of the federal (and corresponding state) exemption.
Is an “Accredited Investor” the same thing as a “Sophisticated Investor?”
Not necessarily. If the investor is only “sophisticated” but not accredited, certain additional requirements could apply in order to satisfy applicable federal (and corresponding state) exemptions.
Do I have to use a “Private Placement Memorandum” or “Offering Disclosure Statement?”
Maybe – the importance of a “PPM” depends on the nature of the offering, the business and the available federal and state exemptions. Talk to Candice Owens and our experienced fundraising team for specific guidance on your situation.
Can I pay someone to help me find investors and close my company’s fundraise?
Not usually, unless they are a registered broker-dealer. Many “consultants” and “advisors” perform broker-dealer type services without a proper registration which can result in the buyer/investor having a right of rescission. When in doubt, ask a seasoned private placement attorney, like Candice!
Can I fundraise without a lawyer’s help?
Of course, but, be prepared for the consequences!
If you want more information about our fundraising or private placement legal services, just reach out!