article thumbnail

5 New Venture Mistakes That Can Cost You The Business

Startup Professionals Musings

This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the Founders, with normal vesting and other participation rules. The best advice is to only take investment funds from people who can financially afford to lose, and who qualify as accredited investors.

Cost 363
article thumbnail

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the Founders, with normal vesting and other participation rules. The best advice is to only take investment funds from people who can financially afford to lose, and who qualify as accredited investors.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules. The best advice is to only take investment funds from people who can financially afford to lose, and who qualify as accredited investors.

article thumbnail

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules. The best advice is to only take investment funds from people who can financially afford to lose, and who qualify as accredited investors.

article thumbnail

Legal Mistakes Every Startup Can Avoid

Startup Professionals Musings

This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules. The best advice is to only take investment funds from people who can financially afford to lose, and who qualify as accredited investors.

article thumbnail

Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Only 35 nonaccredited investors are allowed to buy private equity in a company's offering. That hinders broad-based online fund raising in a couple of ways. million U.S.

Equity 88
article thumbnail

Equity Crowdfunding: Your Solution for Small Business Financing?

Duct Tape Marketing

In exchange for contributions, Equity crowdfunding investors receive ownership interest in the entity raising funds – just as would an angel investor or venture capitalist. Under current regulations, Equity crowdfunding opportunities are only available to Accredited Investors.

Equity 60