Are founders putting themselves at risk if they reveal their fundraising plans on a public forum like Twitter?

Jenny Kassan
July 20,
Jenny Kassan  replied:

Yes!  It is amazing how common it is for founders to publicly pitch investments in their companies.  This is not always illegal.  There are some securities exemptions under which this is allowed (e.g. Regulation Crowdfunding (but with some limitations) and Rule 506(c)).  But most founders have not consciously chosen a securities exemption so they may inadvertently be breaking the law.

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Are founders putting themselves at risk if they reveal their fundraising plans on a public forum like Twitter?

This tweet -- and the many public responses where founders publicly revealed their fundraising status and plans -- prompted the question. #crowdfundingeducation

 https://twitter.com/kyprianou_m/status/1549016138515972097?s=20&t=nTu6epYBcI-euGv2X59dsQ 

Jenny Kassan
July 20,
Jenny Kassan  replied:

Yes!  It is amazing how common it is for founders to publicly pitch investments in their companies.  This is not always illegal.  There are some securities exemptions under which this is allowed (e.g. Regulation Crowdfunding (but with some limitations) and Rule 506(c)).  But most founders have not consciously chosen a securities exemption so they may inadvertently be breaking the law.

1