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Funding for an internet e-commerce start-up.

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I and a friend of mine are in the process of building an internet site; it will be primarily e-commerce based, with a number of "free" services for the users. We have, together, invested several yrs time in the venture. We have registered the domain and built the beginnings of the site, but have not yet opened for business. We are in need of funding to get the site up to what we consider acceptable for offering to the public. We have a very "catchy" name and our sales method worked out, as well as over 680 wholesale lines. The site would offer over 100,000 products at a small percentage over wholesale cost. What I really need to know, is what we would need to go through to offer an investment opportunity to people. I have no real doubt that I can sell my idea, as I have a number of people now interested; what I need to know is how to protect the investment of my partner and I, who have spent a great deal of our time and money in building the company to this point. I would also like to see us continuing in our operations of the business. Would it be possible to offer some sort of "preferred" stock to potential investors? What legal requirements would be involved with a loan whose repayment interest rate was based not on the prime rate, but by a companies profit rate; is that legal? What about a set interest rate loan?


Senior Member
Thge offering is one that has to meet the disclosure and/or registration exemption requirements of the Federal and State securities laws or you would be personally liable to the investors for the money you'd take in.

If you think this is a potential big business, I'd immediately go to a lawyer who does Internet deals for a living -- that alone will make it easier to raise money!

This is intended as general information only and NOT LEGAL ADVICE. You are not my client, and I have no obligation of any kind to you. To retain a lawyer, go to http://AttorneyPages.com

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