Are you looking to raise capital for your company over the Internet? Have you been hearing about the new SEC rules that will allow crowdfunding of start-ups and other growing companies by offering stock for sale directly to investors? Or are you considering a web or email-based capital-raising campaign to take advantage of the new SEC Rules permitting advertising and general solicitation to accredited investors? Shumaker Mallory LLP is an experienced, results oriented law firm of business and securities
One of the most frequent questions that we receive is “how can I go about raising capital for my company over the Internet?” As with many other areas, the law has struggled to keep up with the changes that the Internet has brought to all aspects of business and the economy.
Many business owners and entrepreneurs are surprised to learn that the law severely limits their ability to raise capital over the Internet, dictating the types of investors they may approach, the type of advertising and solicitation that they may undertake, the level of financial and other information that must be provided to potential investors, their ability to pay commissions to finders and other referral sources, and a host of other matters. These restrictions apply to even the most informal friends-a