Legal Question in Business Law in California

How can I legally solicit investors to a start-up

I have been toying with creating a start-up information services company with a unique twist. With insufficient capital and no wealthy "angel" acquaintances, can I legally solicit investors I have never met? For instance, contacting the president of a well-known company offering equity stake in the company for specific investment.


Asked on 5/13/99, 1:58 pm

1 Answer from Attorneys
Thomas W. Newton Tims & Newton

Re: Soliciting investors

In essence, you're asking how to offer securities.

You need to follow very strict guidelines found

in the Cal Corporations Code, and in Federal

statutes to make sure that you qualify for what's

often called a private offering.

I strongly suggest you contact an attorney who

specializes in securities law.

The foregoing information is provided as an

accommodation only, and does not constitute legal

advice or a legal opinion based on a comprehensive

review of all relevant facts, nor can provision of

such information be construed as creating an

attorney-client relationship.

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Answered on 5/19/99, 6:13 pm


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