Raising capital is tough and using all of the free social media resources available to you is tempting. However, under current law, if you are a start-up trying to raise capital, you have to be extremely careful how you go about it.

If you plan on using the most common securities law exemption for start-ups, Securities and Exchange Commission (SEC) Rule 506, you can’t post to the world at large on Twitter, LinkedIn, or Facebook, that your company is trying to raise funds.