The Swedish Companies Act (Chapter 1, Section 7) prohibits private companies from issuing shares to the public through means of advertising.
With this in mind, companies seeking funding must present any public communications around their investment proposals in a manner that cannot be deemed as advertisement for the sale or issuance of shares or stocks.
A good rule of thumb when wondering whether the use of the word ‘invest’ or ‘investment’ crosses the legal boundary is to think about whether your audience is being forcibly directed to ‘invest’.
Consider the difference between these two statements:
CORRECT: “I just invested in company X’s crowdfunding campaign on FundedByMe”
INCORRECT: “I just invested in company X’s crowdfunding campaign, you should too”
Here are some examples of how you may talk about investment opportunities:
“Our crowdfunding campaign has just been approved/gone live/reached a milestone on FundedByMe”
“You are invited to a meeting where we will tell you more about company X’s current crowdfunding campaign/offering"
“Learn more about/get to know our company and its current financing efforts”
And here are some examples of what NOT to say about investment opportunities:
“You should Invest/buy stocks in company X”
“If you want to invest in company X, go to fundedbyme.com”
Below is an extract of the act, which can also be found (in Swedish) here.
Prohibition on sale of shares, etc. in private companies Section 7: A private company or a shareholder in such a company may not, through advertising, attempt to sell shares or subscription rights in the company or debentures or warrants issued by the company. Nor may a private company or a shareholder in such a company otherwise attempt to sell securities referred to in the first paragraph by offering such securities for subscription or sale to more than 200 persons. The aforesaid shall not, however, apply where the offer is directed solely to a group of persons who have previously given notice of interest in such offers and where no more than 200 trading units are offered. The prohibitions in the first and second paragraphs shall not apply to offers which relate to transfers to not more than ten purchasers. Nor shall the prohibitions apply to companies with special limitation on dividends.