Raising Capital for a Company or a Real Estate Deal?
The book shows you what to watch out for and provides a path through the regulatory minefield.
Investment Attorney Russell C. Weigel, III’s book Capital for Keeps is available at www.capitalforkeeps.com, Amazon.com, and other book retailers to help you plan your capital raising transaction from a legal compliance perspective.
CAPITAL FOR KEEPS – LIMIT LITIGATION RISK WHILE RAISING CAPITAL
The mechanics by which medium and large corporations obtain investment capital typically differs from the methods used by real estate entrepreneurs and small corporations. For example, larger corporations often have the attention of investment banking or venture capital firms who may finance the corporation directly. In other instances, investment banking firms may act as agent for the corporation and attempt to locate investors to invest in the corporation. The management of larger corporations usually also have the benefit of in-house and outside legal counsel to advise them throughout the capital funding process.
On the other hand, small companies and entrepreneurs often have to seek capital investment directly from potential investors because they are unable to attract investment banking or venture capital funding on reasonable terms and cannot afford the repayment terms of commercial bank financing, assuming bank funding is an option. Small company executives and entrepreneurs typically have a two-fold problem. They do not have in-house legal counsel experienced with investment compliance issues, and they must look to the general public, angel investors, or friends and family to obtain investment capital. Even for those who believe that nothing can go wrong in the end if they always tell the truth and act with good
intentions, attempting to raise capital on your own without the benefit of experienced legal advisors is a financially dangerous proposition. Yet, executives and entrepreneurs embark on the capital raising journey every day, financing their companies, acquisitions, and real estate transactions. But most are unaware of the safe routes, and many are unaware of the risks. And, as we all know, it is when the deal blows up that the lawsuits fly and the government comes knocking.
This book attempts to provide the self-financier with the roadmap to navigate the capital raising journey with a view to limiting the potential for a destructive lawsuit should one happen. The fundamental questions the book tries to answer for you, the smaller company executive and the entrepreneur, are: what can you legally say to prospective investors, and how, and where, can you say it? In essence, how can you seek investment funds from others while limiting the risk of lawsuits or criminal prosecution?
While no book can be a substitute for professional advice and counsel, if you are made aware how it is possible to raise capital in a legally compliant way, you will be able to make better decisions about seeking professional assistance.
If you are an entrepreneur or small company executive seeking to raise capital for your business or to finance a real estate transaction, this book is for you.