QUESTION

Can I solicit investment partners for a business I am starting if I inform those contacted that I am looking for "Accredited Investors"?

Asked on Jan 23rd, 2012 on Business Law - Alabama
More details to this question:
I am planning on sending an email inquiry to organizations that might have individuals that would have interest in the business I am starting. In these organizations there will likely be some members that are "Accredited Investors". I will only contact the administrators of these groups to give my contact information if they know of anyone that would have interest in the business model and they will need to be an "Accredited Investor". Once they contact me I would perform a serious inquiry into what their resources are and only then if there is a synergy to be gained offer to let them invest. I am planning on using this route as an alternative to Venture Capital from classical VC''s.
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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Yes. You will wish to be counseled by an attorney regarding the securities offering process, and this forum is not legal advice. In general, you need to walk a fine line between identifying accredited investors and making a general solicitation. The determination of whether an investor is "accredited" is generally made not by a "serious inquiry" but by a written representation by the investor regarding his qualifications.
Answered on Jan 24th, 2012 at 6:04 AM

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