What to do next
Confirm which exemption you're relying on
Private raises typically depend on specific exemptions with precise conditions about who can invest and what disclosure is required. Identify the exemption before you approach anyone, not after.
Be careful how you market the round
General solicitation and advertising are restricted under many exemptions. Public posts about an open round can inadvertently disqualify the offering you're relying on.
Get the documents and filings right
Subscription agreements, shareholder agreements, and required regulatory filings all have deadlines. A securities lawyer keeps the raise compliant and the cap table clean for future rounds.
Frequently asked questions
Can I raise money from friends and family?
Often yes, under specific exemptions — but the conditions still apply, including limits on who qualifies and what you must disclose. 'They're friends' is not itself an exemption.
What is an accredited investor?
An investor meeting defined income, asset, or sophistication thresholds set by regulators. Both the US and Canada have such categories, with different tests and definitions.
Can I advertise that I'm raising?
Be cautious. Many exemptions restrict general solicitation, and public promotion can disqualify the offering. Check before posting.
What happens if I get it wrong?
Consequences can include investors' rights to rescind (get their money back), regulatory enforcement, and complications in future financings and exits.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.