Raising Capital? Avoid this Mistake! (And Other Useful Tips…)

VentureBeat recently published my editorial 6 Tips for Raising Capital in 2012. One of the most important tips I included was a warning not to break the ban on public solicitation of a private offering:

There’s a lot of euphoria out there now about the potential for crowd-funding to ease restrictions on obtaining startup capital. But nothing has yet been signed into law yet. For now, make sure you’re familiar with Regulation D, which governs who can invest in a private company. Reg D also puts strict limits on public advertising for private investment opportunities, so be sure that you’re not soliciting investments on a public medium such as Twitter or your blog.

Many entrepreneurs have no idea that Reg D exists — we sometimes hear from CapLinked users who ask how they can advertise their private deal room in tweets. (You can’t! It’s private for a reason.) Click here to read the other 5 tips that I shared.

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