Entrepreneurs: Raising Money to Fund Your Business?

Author: Lance Godard, JD Supra

Raising capital for your business isn’t your full-time job. But it’s one of the most important…

Here are five recent updates that can help you do it right, from lawyers on JD Supra:

Finders May Pose Risk in Private Capital Raising (Venable LLP):

“Entrepreneurs, company executives, and private equity fund sponsors with a growing enterprise, innovative idea, or a new fund often find themselves needing help when it comes to raising capital to fund the new enterprise. As a result, they often turn to friends, colleagues and others with experience raising capital… Often times, the person agreeing to help raise capital (sometimes referred to as a ‘finder’) will agree to provide access to his or her contacts in exchange for a commission payment based upon the amount of capital raised. Satisfied that this ‘finder’ can help raise the necessary funds, the entrepreneur, company executive, or equity fund sponsor continues operating his or her business and lets the finder ‘do his thing’ by making contacts with individuals interested in investing. What these parties often fail to recognize is the danger that such a relationship can present.”  Read on>>