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Funding for angel or venture investors

Riverside, CA |

how can i find way way to get investors for my new business which will require about 500k ? i have around 1990S but i donor want to go through bank because i have poor credit .

Attorney Answers 5


  1. Best answer

    The availability of investment capital for your business will depend on numerous factors. The primary considerations are the security/risk calculation and the return on investment projections.
    Some basic questions investors will likely want answered are:
    What is the business?
    What does your business do?
    How does your business intend to make profits and returns to investors?
    What are the assets of the business?
    Does the business own any patents, trademarks, property, land or anything of value?
    What is the corporate formation/structure? S-Corp? C-Corp? LLC? Partnership?
    Who are the owners/principals/shareholders?
    Where are the corporate books maintained?
    Where are the accounting books maintained?
    Are your books readily available and current?
    Getting this basic information together will be a good start for you in preparation for presenting your business to investors.


  2. If you are contemplating selling securities (ie- stock) in your company to raise money then you will need to talk to an attorney who deals with private offerings. You'll need to put together an executive summary, business plan, and possibly a private placement memorandum, and you'll need someone to help plug you into the Venture Capital / Angel Investor world.

    You'll also need to research what kind of start-up or funding events are being hosted in your area where you can get access to potential investors. Sometimes the law firm you hire may know some VCs or Angel Investors who they can put you in contact with - but you need to be careful about that as there are strict rules governing that sort of thing.

    Legal disclaimer: The answer provided above is for general information purposes only and should not be relied on as specific legal advice. This answer does not form an attorney-client relationship. You should consult with an attorney of your choice to fully advise you about your legal rights and obligations.


  3. First, you need a business entity that can facilitate investors- either a C corp. or an LLC that has sufficient stock or units to appeal to investors. Second, you need to comply with Califonia securities laws because your offereing is a security under California law. Third, you need to put together the appropriate prospectus that would appeal to investors, aka a really good investment opportunity!

    Your question exceeds the scope of an answer that can be adquately provided on AVVO. You need to secure an attorney that specializes in business formation, securities law, venture capital offereings and taxation.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    www.culvercitytaxandbusinesslaw.com
    www.corporateattorney.com
    www.worlclasslawyers.com
    Main: 323-292-4116 ❘ Cell: 562-505-1004

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is philsmithjr@worldclasslawyers.com.


  4. Friends ... Family ... Small Business Administration (sba.gov) ...
    Pray


  5. There are many great suggestions already. Read each of them carefully. Compliance with SEC regulations are monumental and there are legal excemptions to that process not subject to SEC regulations for private offerings. But, this is not my area. Now, if this is a small loan and SBA loan will not work, then as mentioend you must look to other creative methods to find capital. Fomring a Corporation is essential and a good business plan. Other private funding is available through venture capitalists firms. And, for this type of loan, you may want to review a website called Prosper.com if your trying to get no more than $25,000. Perhaps starting small is another option to consider before getting yourself $500k in debt. since your credit is not worthy, you might want to take some classes at SCORE to get your business up and running correctly. Our firm offers these classes along with other executives in different fields and the information gain is extroardinary. Look for a SCORE seminar in your area.

    This email does not create an Attorney-Client relationship.

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