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A few people are wondering about regulations and oversight. Here's a brief summary for this law: * Max $1 million total fund-raising * Max $2,000 or 5% net-wo

A few people are wondering about regulations and oversight. Here's a brief summary for this law: * Max $1 million total fund-raising * Max $2,000 or 5% net-worth from each unaccredited (i.e. non-rich) investor * Must file audited financials with the SEC to start, and every year afterwards * Must use a registered portal, which must be a different entity with different owners Getting your financials publicly audited every year is a major pain, and I think it's going to make this non-viable for most companies.

howlingfantods 10y ago
No requirement for audited financials, only reviewed financials by a CPA. Which makes this stuff all the more risky.
- strommen 10y ago
  Apparently it depends on if you're raising over 500K [1]: "A company offering more than $500,000 but not more than $1 million of securities relying on these rules for the first time would be permitted to provide reviewed rather than audited financial statements, unless financial statements of the company are available that have been audited by an independent auditor;" [1] https://www.sec.gov/news/pressrelease/2015-249.html https://www.sec.gov/news/pressrelease/2015-249.html
  - howlingfantods 10y ago
    I don't mean to be rude, but if you read the quote you posted, it directly contradicts your point. Specifically "permitted to provide reviewed rather than audited financial statements." Of course if a company already has audited statements, they have to submit these more rigorous audited statements.
- thirru 10y ago
  Any day better than what you get on Kickstarter. It's a start and a full-audit costs 25-50k which would literary defeat the purpose of this.
erikpukinskis 10y ago
> registered portal Ugh. More gatekeepers. I don't know why they can't just require documentation and let people do this on their own. Regardless, if anyone is interested, I believe this is a (partial?) list of such portals: http://crowdedmarket.com/platform-reviews/list-of-investment-crowdfunding-platforms/ http://crowdedmarket.com/platform-reviews/list-of-investment...

howlingfantods 10y ago

No requirement for audited financials, only reviewed financials by a CPA. Which makes this stuff all the more risky.

strommen 10y ago
Apparently it depends on if you're raising over 500K [1]: "A company offering more than $500,000 but not more than $1 million of securities relying on these rules for the first time would be permitted to provide reviewed rather than audited financial statements, unless financial statements of the company are available that have been audited by an independent auditor;" [1] https://www.sec.gov/news/pressrelease/2015-249.html https://www.sec.gov/news/pressrelease/2015-249.html
- howlingfantods 10y ago
  I don't mean to be rude, but if you read the quote you posted, it directly contradicts your point. Specifically "permitted to provide reviewed rather than audited financial statements." Of course if a company already has audited statements, they have to submit these more rigorous audited statements.
thirru 10y ago
Any day better than what you get on Kickstarter. It's a start and a full-audit costs 25-50k which would literary defeat the purpose of this.

erikpukinskis 10y ago

> registered portal Ugh. More gatekeepers. I don't know why they can't just require documentation and let people do this on their own. Regardless, if anyone is interested, I believe this is a (partial?) list of such portals: http://crowdedmarket.com/platform-reviews/list-of-investment-crowdfunding-platforms/ http://crowdedmarket.com/platform-reviews/list-of-investment...