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Ask Alex J. Esq. Your Own Question

Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
Satisfied Customers: 13290
Experience:  Experienced Licensed Attorney
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Ive posted our executive summary stating that we are trying

Customer Question

I've posted our executive summary stating that we are trying to raise $1.5M for our venture - a start-up tech company that already raised $600K and built an online prototype. I've posted a statement on LinkedIn and several angel investor networks where I state the type of company, the investment needed, our monthly costs etc. In several emails with people who saw these postings and reached out to me, I suggested the value of the company was between $8M and $10M based on our pro-forma/financials. We are an LLC and we have top names on board. Is there anything here that could be considered illegal - or are there things here that I should be careful of?
Submitted: 3 years ago.
Category: Legal
Expert:  Alex J. Esq. replied 3 years ago.
Hello. My name is Alex and I will be happy to answer your question.

Have you consulted with a local security attorney?

Are you familiar with regulation D?
Customer: replied 3 years ago.
HI, no I haven't consulted with a local security attorney. I am not familiar with regulation D.
Expert:  Alex J. Esq. replied 3 years ago.
This is a very complex and compliance intensive area of law when it comes to securities offering (which this is sounds like).

The government requirements and laws are very stringent and are designed to protect general public and unsuspecting potential investors.

Generally public offerings are regulated by SEC and require registration and approval from SEC, unless they fall under certain exemptions.

I would suggest that you review information at the following link:

http://www.sec.gov/answers/regd.htm

Also I would strongly suggest that you consult with a local securities attorney who can guide you through this process as violation of these laws can subject you to severe criminal and civil liability.

If you are satisfied with my answer, I would appreciate if you would click on the accept button.
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Customer: replied 3 years ago.
Thanks for the link, but I already had that information. I was looking to get my question answered by a lawyer with securities experience who could tell me if what we're doing is okay. My partner put in the first money and we haven't received any additional capital yet. All we've done is reach out to friends in our networks and sent an executive summary. Are you able to provide any answers here? If not, I understand but I'm capable of doing research. I was hoping for more concrete answers here from a human being vs waiting on a phone line or submitting forms to a government website. Thanks either way.
Expert:  Alex J. Esq. replied 3 years ago.
Unfortunately we are not permitted to provide customers with legal advice/opinion of any kind and can only provide you with general legal information.

As I have stated one way or another, unless the investors are going to be partners in your start up you would have to comply with SEC regulations by either applying for an approval to do an initial public offering or for one of the exemptions.

Because every situation is unique and I am not allowed to review particular documents and corporate filings for your company, I can not make a determination and recommend a specific legal strategy or a course of action in your case.


If you are satisfied with my answer, I would appreciate if you would click on the accept button.
Please keep in mind if you already made a deposit or on a monthly subscription plan you will not incur any additional charges, but I will only be compensated for my time and effort only if you click on ACCEPT.
Bonus and Positive Feedback are always appreciated. Thank you and good luck!

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