Accidental IPO deal on web site

Seattle, WA Viewed 206 times. Posted about 1 year ago in Business

TheFunded.com has started hosting "live pitches" on their web site. These pitches include statements about potential revenue of a company, business models, money currently raised, money being raised, and statements of the valuation of the company. Isn't this an IPO? If a company is making such statements and announcing their search for investors - as such offering an investment opportunity, isn't that a defacto IPO? - Is this your question? Add additional information

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Answers (1)

John M. Kaman

This attorney is licensed in California. Posted about 1 year ago.

An IPO is an initial offering of a company's stock on a nationally traded exchange. This does not seem to have anything in common with hosting live pitches on a web site; however if these pitches are untrue, misleading or fraudulent and the company doing the pitching is publicly traded there could be securities law violations on the federal level. There also exists the possibility that these pitches violate state blue sky laws.

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