Colbertson: Most startup founders accidentally violate securities laws during fundraising
Wendy Colbertson · Most Founders File Nothing Until After the First Check Arrives · Feb 24, 2026 · at 0:07
Securities attorney Wendy Colbertson discusses how easily early-stage founders run afoul of securities laws when raising capital in the US.
0:00 / 0:12exact quote · 12.4s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“Probably a lot. It's a very, when it comes to securities and capital raising or raising capital in relation to securities, it's a very easy rule to violate.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Wendy Colbertson
Colbertson: Salaried in-house fundraisers provide a legal safe harbor for startups
“If you hire them and promise them a certain salary, like, because this is your job or something like that that's, One of the safe harbors that's being provided under the Securities Exchange Act. Although that's the only, the key and the pillar that not to, the…”
Colbertson: Tying employee equity to capital raised risks serious securities violations
“Is this is the calculation of the shares, or how did the company determine how much shares they're going to issue or award their, this employee? Is it based off of their performance? Then good, but if it's always, and if it, Ultimately ties into how much capit…”
Colbertson: Founders can legally delay Form D filings until after receiving funds
“You don't have to file anything with the SEC until 15 days from the first day, from the first investment that you receive from your investor.”
Colbertson: Regulatory scrutiny typically only triggers when unhappy investors complain
“One of the ways that this really bubbles up is when your investors are not happy. They invested the money on you and now they're not happy with how the company's being run, that the company is not making money and so on. And that's when all this could surface …”