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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). you want to form a Delaware corporation. Rule #2 : do not pay “finder’s fees”/commissions unless the finder is a registered “broker-dealer”. Mistake #5: Not Doing Your Due Diligence on Potential Investors.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

issues to address include: How have they treated their other portfolio companies? (i) 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.,