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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #5 : not doing your due diligence on potential investors (at 38:36). CA exception – CA Labor Code Section 2870: (i) different space, (ii) not using employer’s facilities and (iii) idea/IP is not based upon work done for employer. Rule #1 : only sell “securities” to “accredited investors” – why? (i)

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies? (i)

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Crowdfunding Your Startup with MicroVentures

ReadWriteStart

The service is meant to help investors from all over the country - both accredited investors and what the company calls "sophisticated investors" - gain access to deal that they wouldn't ordinarily see. MicroVentures is an online investment service that uses peer-to-peer fundraising. Discuss.

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How to Fund a Startup

www.paulgraham.com

I think it would help founders to understand funding better—notjust the mechanics of it, but what investors are thinking. I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison.