All or nothing financing: Rules to protect investors.

 

  1. All fund-raising must be done through an intermediary who is registered with the SEC.
  2. You may raise up to $1 million per year -- but have to raise the entire amount to claim any of the capital raised.
  3. Investors with assets less than $100,000 can only invest up to 5% of their income or net worth.
  4. Investors with assets or income over $100,000 can invest 10% or up to $10,000.
  5. Your startup does not have to be registered with the SEC which reduces the need for lawyers.
  6. You can also raise capital from Venture Capitalists and/or Angels.
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