Month: October 2018

Many entrepreneurs are unaware of the legal requirements behind accepting investor funding. Accepting money from anyone and everyone is rarely a good idea; in the worst case scenario, it may even be illegal.

The Securities Act of 1933 requires any company, including startups, to provide investors with full disclosure of all facts pertinent to the investors’ ability to make an investment decision. While securities legislation has been modernized and simplified in recent years, it’s still exceedingly important for entrepreneurs to familiarize themselves with the law or they’ll be at risk of subjecting themselves to civil and/or criminal liability.