Can I Raise Money for My Startup via Twitter?

Introduction

I get this question all the time (in one form or another): “Hey Scott, can I raise money for my startup via Twitter?  I have a lot of followers, and I know some of them would be interested in investing.”  As discussed below, the answer is no — unless the tweet is a direct message (a “DM”) to a follower with whom you have a substantive, pre-existing relationship. 

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Tags: entrepreneur, general solicitation, offer, SEC, Securities Act, securities laws, startup, twitter
Posted in Ask the Attorney, Securities Law Issues | 2 Comments »