Copied from: Virtual Wall Street
The Primer is intended to assist thinking through what route to follow when embarking on a program to finance a business.
Private Offerings, the first step. Normally, one raises the first funds on a private basis, especially if the need is modest, say, under $1.5 million.
Explanations of the suitability and restrictions of the available types of offerings - Rule 504, SCOR Offerings, Regulation A, SB-2, SB-1 and others.
"Private Placement Memorandum" ("PPM") - Disclosure Documents for private placements
Integration Tips - Integration is a curse on small business because it can delay sequential offerings.
Restricted Securities and Trading. Dealing with Rule Requirements.
The Internet - surprisingly, Regulators actually encourage the use of the Internet as a vehicle for the sale of securities.
Jurisdiction - subject to its abdication in SCOR Offerings, the Federal government usually ignores its jurisdiction over any offers or sales which are made in more than one state. The use of the Internet is an example, as one simply says "this is not an offer in any state where not qualified" and the 'offer" becomes a "non-offer'
The Investment Company Act of 1940 controls mutual funds with more than 100 owners. The '40 Act is infamous as being extremely restrictive and is one of the primary reasons Venture Capital is confined to relatively few very wealthy individuals and institutions; a "Cartel of Capital."
Seeking seed money for start-up companies: recommended steps and alternatives.
"Who can sell our offering?" and a Periodic Chart of the essential elements of California and Federal Securities Laws and Regulations.
AppendixPeriodic Chart Of The Essential Elements Of Securities Laws and Regulations