Please help with can’t Grow

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Started by smalltownlegal_11 · Mar 9, 2025 · 6 replies
For informational purposes only. This is not legal advice.
RR
smalltownlegal_11OP

Looking for advice on this situation. Revenue-Based Financing Taking 25% of Revenue - Cant Grow Any guidance would be greatly appreciated.

Details: I'm in a situation where I need to understand my legal options. Has anyone dealt with something similar?

FB
legally_confused_5

Securities compliance isn't optional. Even for a friends-and-family round, you need a proper exemption (usually Reg D 506(b)). The penalties for unregistered securities offerings are severe and personal.

RC
matt_k_real_11Attorney

At the seed stage, simplicity wins. SAFEs are simpler than convertible notes (no maturity date, no interest). But some investors prefer the forced conversion mechanic of a note. Know your leverage.

RT
InsuranceAdj_31

Securities compliance isn't optional. Even for a friends-and-family round, you need a proper exemption (usually Reg D 506(b)). The penalties for unregistered securities offerings are severe and personal.

RL
seriously_though_12Attorney

Securities compliance isn't optional. Even for a friends-and-family round, you need a proper exemption (usually Reg D 506(b)). The penalties for unregistered securities offerings are severe and personal.

MF
thepracticalguide_9

At the seed stage, simplicity wins. SAFEs are simpler than convertible notes (no maturity date, no interest). But some investors prefer the forced conversion mechanic of a note. Know your leverage.

RR
smalltownlegal_11OP

Update: Thanks everyone for the guidance. I consulted with an attorney and we're moving forward. The advice here helped me understand what questions to ask and what to expect. Will update when there's a resolution.