At VentureSouth, we’ve learned a lot from Twitter. We also try hard to avoid trouble with regulators – both for ourselves and our portfolio companies.
Over the past few weeks, those previous sentences have created some cognitive dissonance as we’ve watched company after company, and venture fund after venture fund, openly discussing their fundraisings on Twitter. What are they doing??
Watching people doing what we think is, at best, poorly-advised prompted us to wonder what we were missing. We went back to refresh our knowledge about fundraising rules, and put together this series of blog posts for our members, and you, to recap the basic rules of fundraising.
So here begins a new series: The Perils of General Solicitation.
Before you sigh and hit the X, wait! The next few posts cover terrible publicity, huge fines, unwound funds, and tales of incompetence, possibly fraud, and Twitter wars – all the good stuff. If you are raising money, or plan to raise money, please keep reading to ensure the next tale is not about you! Come back tomorrow and we’ll get started.