"looking for investors" Newspaper Add!!!!!!!

abalex

abalex

Well-known member
If you were looking for investors in your area and post an ad in the newspaper asking for money , what would you write? Good examples please. I'm this situation!!!:p

thanks
george
 
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Well, I would definitely work on spelling (ad not add, on not one.) How many characters are you alloted?
 
I'm not sure I'd put your phone number or address :) Depending on how the deal is structured, looking for passive investment money may require an SEC filing,
disclosure documents and all the rest.
 
Aram Bauman said:
I dont think investers would be looking in the papers classifieds for investment possibilities.
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That's what I was thinking.

Does anyone know if the SEC requirements come into play if you approach family and friends and they "donate" funds to you? Does it change things if they give to you directly, or if they give to your "production company"?
 
Why don't you hire a professional to get the investors? But.....then you'd need investors to invest in getting a professional investment getter to get investors for your investors.......damn......wouldn't it be easier to just stand on a street corner and beg?
 
Donations are tax & irs-exempt, to a point. It's when you're promising them a return on their money that the SEC becomes involved. But if they're just giving it to you, you have no problem.

Only tax issue is the $11,000 gift-tax exemption; as long as they give you $11,000 or less in one year there's no tax effects for either party, AFAIK -- double-check with an accountant for current details.
 
Thanks Barry...that makes sense. What if you offer "things" in exchange? For example if I tell them I am accepting donations and if they donate over "a particular dollar amount" then they get an associate producer credit, or over a particular amount they will get a DVD of the finished product, etc, etc. As long as I don't promise them a "return on their money/investment" am I clear?

Thanks,
Larry
 
Barry_Green said:
It's when you're promising them a return on their money that the SEC becomes involved.
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I dunno about that. The SEC regulates publicly traded companies. From their site:

the SEC requires public companies to disclose meaningful financial and other information to the public.

The state laws and the form of business organization are much more relevant here.
 
I'm talking about the blue skies securities laws. If you offer securities for sale, you may indeed come under the scrutiny of the SEC. If you defraud someone, the SEC is who comes knocking on your door, whether you're a publicly-traded company or not.

But Larry's not talking about that, he's talking about a private donation, not through public markets, so it shouldn't be much of an issue.

If you offer something in return OTHER than an investment, you should probably not have to worry about the SEC. But if you're promising "a piece of the action", they may indeed become interested in what it is you're doing.

But this is all general off-the-top-of-the-head stuff; you'll also have to comply with state regulations and such, so don't take any internet advice on legal matters (and once money starts changing hands, you enter the realm of where the lawyers live and breathe).
 
Barry_Green said:
If you offer something in return OTHER than an investment, you should probably not have to worry about the SEC. But if you're promising "a piece of the action", they may indeed become interested in what it is you're doing.
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Sure, and investment (I think you mean in the sense of money return) and "piece of the action" should all be rigorously defined on paper to immunize yourself against legal action as much as possible. Attorneys at all levels (in goverment and outside of it) will be only too interested in that!!

Cannon(?) has a good book on all this. It's been a while since I read him, but he was a big help.
 
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