All or nothing financing: Rules to protect investors.

 

  1. All fund-raising must be done through an intermediary
    who is registered with the SEC.
  2. You may raise up to $1 million per year -- but have
    to raise the entire amount to claim any of the capital
    raised.
  3. Investors with assets less than $100,000 can only
    invest up to 5% of their income or net worth.
  4. Investors with assets or income over $100,000 can
    invest 10% or up to $10,000.
  5. Your startup does not have to be registered with the
    SEC which reduces the need for lawyers.
  6. You can also raise capital from Venture Capitalists
    and/or angels.
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