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How to Write a Business Plan for Raising Venture Capital

Growthink Blog

Detail prior accomplishments, including funding rounds, product launches, milestones reached, and partnerships secured, among others. Contact our private placement memorandum experts. Or, if you're developing our own PPM, consider using Growthink's new private placement memorandum template. read more.

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Raising Capital? 3 Tips for Entrepreneurs

Scott Edward Walker

Introduction I’ve been helping entrepreneurs raise capital as a securities lawyer for 17+ years, and there are certain fundamental legal mistakes that I’ve seen entrepreneurs make over and over again. Fundraising Tips Tip #1: Only Offer and/or Sell Securities to “Accredited Investors”.

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How to Get Funding for a Business

Up and Running

securities and exchange regulations to individuals meeting some minimum wealth requirements, called “accredited investors” in the legal wording. government securities laws discourage getting business investments from people who aren’t wealthy, sophisticated investors. Traditionally, angel investment was limited by U.S.

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Why Finders Are Losers

The Startup Lawyer

Me : Well, it’s an issue because the finder offering to raise capital for your startup should likely be registered with FINRA (Financial Industry Regulatory Authority) and your state’s securities board. Most importantly, using an unregistered broker-dealer can, at a minimum, jeopardize your startup’s private placement exemptions.

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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

Does a Startup Have to Comply with Any Securities Laws in Connection with the Issuance of Convertible Notes? Yes, a convertible note is a “security” under federal and state securities laws. Second, there is no written disclosure requirement, like a private placement memorandum, if the investors are accredited.

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Do You Know How to Pitch Your Startup in Social Situations?

Up and Running

He secured a $100,000 investment in the time it took to drive McClure to his mechanic. There’s no need to show your private placement memorandum or month to month revenue growth projects. Think of unconventional (but socially acceptable) ways to get an investor’s attention and when an opportunity opens up, take advantage of it.

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Early stage money: The problem with PPMs

Berkonomics

The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D). A Private Placement Memorandum (PPM) is a special business plan defined to meet an SEC exemption.