Comments on: Life is Too Short to Deal with Non-Accredited Investors http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors Startup Law, Incorporation, Convertible Notes, Preferred Stock, Stock Options, Venture Capital Fri, 12 Mar 2010 18:59:08 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Reading: Session 8 – Getting Financed — Start Your Business Course http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-117 Reading: Session 8 – Getting Financed — Start Your Business Course Tue, 15 Sep 2009 19:50:31 +0000 http://www.thestartuplawyer.com/?p=170#comment-117 [...] Life is Too Short to Deal with Non-Accredited Investors [...] [...] Life is Too Short to Deal with Non-Accredited Investors [...]

]]> By: North http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-116 North Sun, 02 Aug 2009 00:36:59 +0000 http://www.thestartuplawyer.com/?p=170#comment-116 What about friends and family? Aren't people with whom you have a "preexisting relationship" in the same category as qualified investors? Thanks, this site is a big help. What about friends and family? Aren’t people with whom you have a “preexisting relationship” in the same category as qualified investors?

Thanks, this site is a big help.

]]> By: BA410.com » Blog Archive » Class 7: Getting Financed http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-110 BA410.com » Blog Archive » Class 7: Getting Financed Mon, 20 Apr 2009 19:59:49 +0000 http://www.thestartuplawyer.com/?p=170#comment-110 [...] Life is Too Short to Deal with Non-Accredited Investors [...] [...] Life is Too Short to Deal with Non-Accredited Investors [...]

]]> By: BA410.com » Blog Archive » Reading: Getting Financed http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-109 BA410.com » Blog Archive » Reading: Getting Financed Mon, 20 Apr 2009 19:59:11 +0000 http://www.thestartuplawyer.com/?p=170#comment-109 [...] Life is Too Short to Deal with Non-Accredited Investors [...] [...] Life is Too Short to Deal with Non-Accredited Investors [...]

]]> By: Ryan Roberts http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-111 Ryan Roberts Tue, 07 Apr 2009 21:08:09 +0000 http://www.thestartuplawyer.com/?p=170#comment-111 "Accredited" investors is a term defined by the SEC. I don't think you can generalize what accredited investors as a whole prefer or want in an investment. But from a legal standpoint, I would recommend raising capital only from accredited investors. “Accredited” investors is a term defined by the SEC. I don’t think you can generalize what accredited investors as a whole prefer or want in an investment. But from a legal standpoint, I would recommend raising capital only from accredited investors.

]]> By: Art http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-112 Art Thu, 02 Apr 2009 14:46:38 +0000 http://www.thestartuplawyer.com/?p=170#comment-112 What about if you are raising money for a real estate venture. I am trying to raise 3 million for the purchase of residential real estate. I want to give the investors a note and mortgage on the property that I buy and then pay them an 8% annual return with payments made monthly. The term on the note is 5 years. Should I consider trying to use accredited investors or is this something they would'nt be attracted to? What about if you are raising money for a real estate venture. I am trying to raise 3 million for the purchase of residential real estate. I want to give the investors a note and mortgage on the property that I buy and then pay them an 8% annual return with payments made monthly. The term on the note is 5 years. Should I consider trying to use accredited investors or is this something they would’nt be attracted to?

]]> By: Ryan Roberts http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-114 Ryan Roberts Thu, 05 Mar 2009 14:55:15 +0000 http://www.thestartuplawyer.com/?p=170#comment-114 The deal structure really has nothing to do with the accredited/non-accredited problem. A convertible note is considered a 'security' and you would still have to find an appropriate exemption from registration. Even a note without a convertible feature is a 'security.' The deal structure really has nothing to do with the accredited/non-accredited problem. A convertible note is considered a ’security’ and you would still have to find an appropriate exemption from registration.

Even a note without a convertible feature is a ’security.’

]]> By: Jeff http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-113 Jeff Wed, 04 Mar 2009 21:12:55 +0000 http://www.thestartuplawyer.com/?p=170#comment-113 Is it possible to sidestep the complications of taking seed-stage money from non-accredited investors by structuring the deal as a convertible note? Some of my friends and family seem willing to take the chance on an early investment, but I don't want that to hinder potential future rounds with VCs. Any thoughts? Is it possible to sidestep the complications of taking seed-stage money from non-accredited investors by structuring the deal as a convertible note? Some of my friends and family seem willing to take the chance on an early investment, but I don’t want that to hinder potential future rounds with VCs. Any thoughts?

]]> By: Benefit Consultant "Gordon" http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors/comment-page-1#comment-115 Benefit Consultant "Gordon" Wed, 01 Oct 2008 04:44:08 +0000 http://www.thestartuplawyer.com/?p=170#comment-115 A really good article. Thanks! A really good article. Thanks!

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