Category: Seed Rounds
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What is a Private Placement?
While no true definition of a private placement exists, it is commonly used to refer to the raising of capital (i.e., “securities”) without making a registration with the United States Securities and Exchange Commission (SEC). Under the Securities Act of 1933, any offer to sell securities must either be registered with the SEC or meet…
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How to Issue Weak Preferred Stock to Friends & Family
How to issue preferred stock to friends and family without limiting future venture capital rounds.
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Life is Too Short to Deal with Non-Accredited Investors
Why your startup company should not raise money from non-accredited investors
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Why Your Startup Company Needs to Keep the Number of its Investors Low
If you can’t self-fund your startup company and must take on investors, keep the number of your investors as low as possible. A low number of investors will reduce your startup company’s transaction costs and headaches associated with raising funds. I’d rather my client raise $90k from one investor than $100k collectively from ten based…