California Startup Seed & Family Round Investments Lawyers

Headquartered in Orange County, We Serve Businesses Throughout the Golden State

Helping Clients Close Funding Opportunities With Relatives & Friends

For California companies in startup mode who want seed money before engaging outside angel investors, a round of investment from close friends and family can help get the business beyond the ‘idea stage’. Using this money to jumpstart a product or service to reach paying customers or inspire a passionate fanbase can be crucial when you need to impress an outside angel investor for additional funding.

How Our California Startup Seed & Family Round Investment Attorneys Can Help Your Business 

Adams Corporate Law can help you coordinate a family round investment to seed your California company with critical startup funds. Developing your project into a fuller and more substantial product means you can attract the attention of investors who can contribute much larger sources of funding down the line. When you need assistance, contact our startup seed and family round investments attorneys. Headquartered in Southern California, we serve businesses in all industries throughout the state of California.

Can I Raise Money from a Non-Accredited Friend or Relative?

Raising capital from friends and family members is often the most reliable way California startups can get off the ground. That’s because these people have often known you for years, believe in your vision, and trust that you’ll use their investment to work on your company.

Despite this, few or none of these people may be qualified investors – but that doesn’t mean it’s impossible for them to participate.

The following can allow non-accredited investors to fund your company:

• Securities Exchange Commission Rule 504 of Regulation D: This rule allows a startup to raise up to $1 million in a twelve-month period. It also permits founders to bypass a requirement in a similar rule (506(b)) that could lead to higher legal and accounting costs.
• CA Rule 25102(f): This California rule allows up to 35 non-accredited investors to participate as long as they have a preexisting personal or business relationship with a founder or they can protect their interests with their own financial experience or access to a financial advisor.

Our California startup seed and family round investments attorneys, headquartered in Southern California can help you navigate these options to ensure that funding for your company is conducted lawfully.

Contact Adams Corporate Law online for more information about how we can assist you.