Laws Applicable to Raising Capital

There are a number of laws that are applicable to raising capital from a third party source. This is primarily due to the fact that the Securities and Exchange Commission has outlined a number of regulations that ensure that angel investors are protected from companies that do not intend to use the funds as they have advertised to a potential funding source. Whenever you are thinking of raising capital, you should work with an attorney that can assist you with developing the appropriate documentation for a potential funding source. It is imperative that you focus substantially on ensuring that you remain within the letter of the law as it relates to working with a third party capital source.