pre-IPO Companies: Opportunities & Information

[chessmite]

Know the risk(s):

The Disappearing Form D

One mandated component of taking advantage of these registration exemptions is that the startup needs to file a Form D with the SEC. The Form D is free to file and relatively simple, requiring basic information such as the amount of capital fundraised and who the investors were in the round. It’s required to be filed 15 days after the first sale of securities, and, conveniently, the form preempts most state securities laws so that startups don’t have to file in state jurisdictions.
There are theoretically large penalties for failing to file — a company could open itself to investor lawsuits, and there are various financial felonies available that could be applied, as well.
But that’s legal theory, and the practicalities are that almost nothing bad happens to startups that fail to file a Form D. American courts, along with the SEC, have upheld that a startup does not lose its covered security exemption by failing to file the form.
https://techcrunch.com/2018/11/07/the-disappearing-form-d/
....also has a company perspective for hesistation
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Worthy Read: SEC Expands ‘Regulation A’ Eligibility to Reporting Companies
https://www.jdsupra.com/legalnews/sec-expands-regulation-a-eligibility-to-40667/