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.
Please see full publication below for more information.