Legal · Seed funding

What are the primary guidelines for General Solicitations?

Rupert Meghnot MBA CXO, Burnout Game Ventures, LLC

February 4th, 2017

From what I've researched, it is OK under current understanding of General Solicitation rules to post tweets & social networking posts saying that you're looking for capital. The caveats are that you must not mention the deal, or potential ROI. Is this correct? What are some suggestions for language to use?

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Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

February 4th, 2017

The rule against general solicitation applied to offerings that were made under Regulation D and was lifted for those offerings under the JOBS Act provided the offering is made to accredited investors only. If you are using a brokerage firm to make the offering or a crowdfunding portal that is a FINRA member there are still guidelines for advertising. Your question is too complex for a site like CoFounders Lab. I assume that you have a competent attorney who helped you prepare the offering documents. That is the person who should be able to answer your question. If you are offering securities to investors without a competent attorney you are opening yourself up for more problems than it is worth.

Rupert Meghnot MBA CXO, Burnout Game Ventures, LLC

February 11th, 2017

We just want to get the word out, without getting slapped. Several SEC attorneys have indicated that, for our small (<$250k) raise, we'll need to be concerned about our state's reaction (Florida), rather than the SEC's (which has bigger fish to fry). Just wanna let people know that we're looking for investors for our unique funding model.