Who can invest in my company?

Who can invest in my company?

Anyone with money. As long as you create a contract specifying the terms of the agreement, anyone can invest in your company. 

That said, there are securities regulations that you need to comply with when accepting an investment, and those regulations are more stringent if the person investing in your company is not an "accredited investor." Because of this, it is typically recommended that you only accept investment from "accredited investors." 

Accepting investment from "non-accredited investors" requires you to disclose more detailed information to the investor about your company and what specific risks they are taking with their investment. There are also certain limits to how many "non-accredited investors" you accept investment from and how much money you raise from "non-accredited investors." 

Accepting investment from accredited investors carries much less disclosure burden on your part, though you do typically want the investment agreement to have "investor representations" that they understand what they are getting in to and that they are an accredited investor.

If you have any questions about securities regulations and how they impact your company, you should talk to a corporate lawyer before taking on any investment. Connect with one of our partner attorneys here, they'll be happy to answer any specific financing questions you have. 

Savvi Technologies, Inc. is not an attorney or a law firm, and can only provide self-help services at your specific direction. Do not rely on any documents or information from Savvi without consulting an attorney. Savvi may partner with or refer clients to licensed attorneys, but such referral does not constitute an attorney-client relationship until the attorney is officially engaged by the client.