Stay Compliant When Raising Funds For Your Startup: 8 FAQs

Developing a product or service and scaling a startup's business model need big amounts of cash. Thus, most startups seek capital from investors at some point. There are some legal hurdles to overcome when asking people to invest in your startup. The following questions and answers will help you stay in safe waters and alert you to areas where you should not sail without an experienced guide.

1. What is a prospectus?

A prospectus is neither a pitch deck and nor a glossy brochure about a startup, but a disclosure document issued before offering shares to the public. The prospectus must contain very detailed information as set out in articles 40 to 49 of the Swiss Federal Act on Financial Services (FinSA) and articles 50 to 57 and annex 1 of the Swiss Financial Services Ordinance (FinSO). Also, it needs to be checked by a reviewing body (currently BX Swiss AG or SIX Exchange Regulation AG). Drafting a prospectus is a demanding and time-consuming process that