Direct Investment

A “direct investment” is an investment made by an investor directly into an operating company, typically a startup, small or midsized privately run operation.  These investments are typically highly illiquid and involve substantial risk relating to the management and the industry, among many other things.

Direct investments are securities offerings and, therefore, are subject to both federal and state securities laws, rules and regulations.  Investors are strongly encouraged to conduct thorough due diligence before making an investment directly into any company. 

Due diligence, when done correctly, requires thorough knowledge of all applicable laws as well as the standards involved in respect valuing your investment both at the onset and thereafter.

If you are considering a direct investment, or have already made a direct investment, please contact Wittenberg Law to discuss your legal rights and options.