On a crowdfunding website, can investees say that they are willing to sell a portion of their company for $X? In USA and CAN.

Asked 3 months ago - New York, NY

I watch the Dragon's Den and Shark Tank and would like to emulate that on a crowd funding website for the general public (not necessarily accredited investors). Currently, crowd funding websites do not allow one to buy a portion of a company. I just want to create a platform where people advertise how much of their company they are willing to sell for $X.

Thanks
Curious Non-accredited Investor

Attorney answers (2)

  1. Robert John Murillo

    Contributor Level 19

    1

    Lawyer agrees

    Answered . No,unless you look forward to defending loads of state and federal lawsuits. I figure you know this, but if you want to do anything at all regarding securities (investments) you need to hire an experienced attorney as this is not a DIY project at all.

    This answer is for informational purposes only and is not legal advice regarding your question and does not... more
  2. Nathan M. Hull

    Contributor Level 8

    Answered . There are a number of services online that allow for crowd funding by the sale of shares. I believe most of them try to deal with accredited investors as that is much safer under recent changes in securities laws. The concept has many potential legal pitfalls at the state and federal level.

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