Facebook Twitter google+ RSS Feed

Legal Mistakes Startups Make While Raising Funds

Printer Print Email Email

Fremont: Several startup entrepreneurs, especially the newbie, are usually found juggling for funds. They try every possible source to raise fund; may be bootstrapping from friends or family, issuing shares, or seeking angel and venture capital; they tend to make some legal mistakes. Below mentioned are few such legal mistakes that startups usually make while raising capital.

Advertising Or Soliciting Investors

legal mistakes while raising fund, avertising investor, Startups should refrain themselves from advertising or soliciting investors. Any advertisement, article, notice or other communications through print media or via electronic media is restricted between the perspective investor and the investee unless there is a substantial and pre-existing relationship between them. Before publishing any such matter, the perspective investor should have a business relationship that is in place prior to the offer sufficient for the issuer to determine that the investor is a suitable one. To be pre-existing, a relationship should  be in place before the terms of the offerings are developed and the offering of securities commences.


next new
Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Sr. Executive
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
Reena Khanna
Dellas  Asse
sys-network admin
Computer Station
Follow SiliconIndia :
Write your comment now
Submit Reset