Raising Capital from Customers
If you run an independent company and are looking for ways to raise capital, consider selling shares to your customers via a private placement. A private placement is a streamlined way to raise capital from a group of investors, whether individuals or companies. There is no need to get approval for a private placement from the Securities & Exchange Commission, though you do have to comply with other federal requirements and will need an experienced lawyer to help you with the process. Why try this seemingly unconventional way instead of just approaching traditional sources like banks and venture capitalists? Here are some reasons:
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