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I know there were a lot of questions floating around about the issue of raising capital - here's something that I gleaned off Andy Klein's wallstreet.com(*) - it is required by law (SEC directive as of 1998) that private placements should be limited to investors with assets of $1million or an annual income of not less that $200k (income expected to continue !!!).
This would be the case in a formal offering rather than seed level funding where one could get money from friends and relatives.
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