Although the "friends and family" round of financing seems informal, many entrepreneurs are surprised to discover that it falls under the umbrella of the securities laws. In this blog post, Alex Davie explains how the securities laws apply to this kind of bootstrap financing, other securities law considerations startups face, and the penalties which can befall a company which fails to follow these rules.
- Summary by FizzLaw Team
Read the Article at:
Is securities law compliance really all that important for a small company raising money from friends and family? (Yes, it is.)