Legal Mistakes Startups Make While Raising Funds
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Using An Unregister Finder To Sell Securities

legal mistakes while raising fund, using unregistered finder to sell securitiesThere is no free lunch when issuers allow finders to help them sell securities. The involvement of even one unlicensed and unregistered finder to sell securities is risky. The issuer and its officers will be legally liable for the acts of the finder. The startup should consult with experienced securities counsel to fully understand the risks and limitations, credentials, the nature of the proposed relationship and the compensation to be paid to the finder before hiring a broker or investment advisor who is not registered.