Typically, the first people that start-up founders turn
to for financing are their friends and family. Of course, most friends and
family members are not going to worry about valuations, projections, business
strategies. They invest because of their trust and strong personal ties to the
In my previous blog post, I described the federal and
state laws that apply to friends and family rounds of financing. To an
entrepreneur trying to raise only $100,000, this will sound complicated and
even overwhelming, as well as expensive. Preparing extensive disclosure
statements and making the...
On September 20, 2012, the California Department of Corporations filed a complaint in the Los Angeles Superior Court that alleged that a number of companies did not qualify the offer and sale of limited liability company interests, bridge loans, promissory notes and convertible debentures in at least...