Your Private Fundraising Round is Now Public

The SEC has changed, effective as of March 2009, the disclosure requirements for private companies selling stock. The new Reg D rules now require electronic filings for each financing that a company completes. This means you will need to disclose the amount and timing of your financing and the executive officers and directors of your company. While this information was previously required for the Reg D safe harbor, it is now instantly publicly available. It is critical that the information filed be accurate. The new filing requirements however no longer make you disclose the name of each purchaser, although if your purchasers are serving on your board of directors, the public will now know this information. Please note that there are other exemptions from the securities laws that you may be able to rely on to avoid this public disclosure requirement that we can advise on.