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How Attracting VCs Online Can Attract Legal Headaches

min read
Opinions expressed by Entrepreneur contributors are their own.
attracting-vc-online-headache.jpgWith Foursquare landing $20 million in a recent venture capital funding deal, entrepreneurs are starting to ask, "Why not me, too?" Increasingly, they're turning to internet sites to attract investors who otherwise might never have heard of them. But is that a legally prudent way to go?

Using the internet to interest VCs in your business idea can gain you a lot of exposure. But it can also ensnare you in a legal net if you're not careful. There's the need to balance the increased "eyeballs" with concerns about confidentiality.

Plus, not phrasing the post carefully could run your company afoul of the many state and federal securities laws. Listen to this podcast below as we talk to Robert Bertsch, Esq., co-founder and CEO of RaiseCapital.com, on how to handle these thorny issues.

 

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