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March 1, 2010

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Is there any way to advertise and sell stock to accredited investors without public registration?

I had a quick question which I am hoping has a simple answer yet I doubt it does. I have owned many companies ranging from manufacturing to software. I have always found the financing part confusing with regards to one issue: Is it possible to do a private placement to raise funds from accredited investors without utilizing a broker dealer? For example,…can a company take a 2 step approach such as the following: 1) create a general ad campaign dispersed to the general public and then “filter out” accredited investors 2) once the accredited investors have been qualified they are then presented the opportunity by employees of the actual company raising the money. I ask this question because of my last company. I started the company with $1200, and in a few years grew it into cash flow of $10MM, and yet still was unable to attract VC financing. I did not want to go the public route yet still wanted the ability to raise funds for additional growth. Any help/direction would be appreciated

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