Issue:
I am a businessman and I what are angel investors finished my business plan. I am preparing to raise $ 2 million for my real estate company shine - but one of my friends said I should talk to qualified investors.
I'm not exactly sure what is a qualified investor and I do not understand why I what are angel investors can not talk to anyone I want to invest in my business?
Answer:
The term, borrowers, investors have to do with the securities laws - federal and state - and ensure that it complies with heavy restrictions that go with raising money for what are angel investors .
I'll give you the answer to both short and long term which is a qualified investor in one minute. But first thing to know is that if the capital increase of what are angel investors (private Alias), which is almost certainly need more than just a business plan.
You need what is known as D Private Placement Memorandum Reg - PPM - to respect the values ??of federal and state laws.
If planning to what are angel investors launch its offer JUST traditional venture capital, you do not need a PPM. However, more than 95% of start-ups are too small, too embryonic achieve levels of threshold levels of funding and potential market capitalization growth to attract venture capital funding.
Therefore, over 95% of companies in the beginning to seek funds from private investors. Therefore, over 95% have a PPM Reg D.
Reg D is an exemption from what are angel investors the Act on Securities private placement that allows companies to raise funds from investors without all the costly requirements and extremely heavy legal and accounting to a public offering.
To qualify for the exemption Reg D, you must follow very strict rules. One is to have the PPM. One that does not ask the general public (it's big). Another is that throwing the deal for investors who can what are angel investors really afford to risk and lose their money.
Therefore, they must be accredited. It actually complicates it can usually offer your agreement to what are angel investors up to 35 investors not to credit the most offers, depending on how they are structured - but believe me when I say you what are angel investors better stay with the sophisticated what are angel investors accredited investors.
If you want more details on this, see my website - you can not see why you do this, some of the heavy penalties for not doing so (what are angel investors, possible but not probable imprisonment) and the list Complete Reg DI obtained from the SEC. In addition, on the same page, you can proceed to the definition of a qualified investor.
Bonus: For more information on financing documents, business plans, articles, tips and tools for entrepreneurs and start the CEO what are angel investors of the company, you are invited to visit my blogs and websites .. .
and make your own questions. Once there, I invite you to download both a sample of complete business plan and Reg D private placement memorandum complete (PPM) FREE ...
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