nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Karen Tyler

ND Securities Department
600 East Boulevard Avenue
State Capitol, 5th Floor
Bismarck, ND 58505-0510
Phone: (701)-328-2910
Toll Free: (800)-297-5124
Fax: (701)-328-2946
Grafton Office
701 W 6th Street, #312
Grafton, ND 58237
Phone: 701-352-4592

Capital-raising Pitfalls

Recent law changes and newly available capital from investors have changed the business funding landscape.  The new and enhanced opportunities to raise capital through crowdfunding, and public advertising for investors under JOBS Act regulations, also carry risks for unwary entrepreneurs.  Securities offerings either must be exempt from registration requirements or properly registered, even under the new laws.  Exempt securities remain subject to federal or state anti-fraud provisions meaning entrepreneurs must provide full and accurate disclosures as part of any offering.  Remember a security can be a stock, note, agreement, financial instrument or anything else that provides an investor with an expectation of participating in the profits the entrepreneur generates.  The inadvertent failure of an entrepreneur to follow securities laws can result in money judgments for investors that can rob the profits of a new or expanding business enterprise.  It pays to research your selected method of capitalization before you solicit any investors.