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Wouldn't this quickly run afoul of the SEC? Is this money to be considered equity, a loan, or what? There are many laws to trip over here, especially Federal.
by mikecane 17y ago
Wouldn't this quickly run afoul of the SEC? Is this money to be considered equity, a loan, or what? There are many laws to trip over here, especially Federal. I know if I gave such a startup, say, $1,000 and it became huge, I wouldn't want only $1,000 repaid! I'd see myself as an investor for equity and that would invoke the laws governing stocks right there.
- lambdom 17y agoIt would be cristal clear before you pay the $1,000 what will happend with that money if the company is succesful and how much you would get.
- kadavy 17y agoYeah, it's a shame. The guys over at http://scalewell.com http://scalewell.com looked into this and it was pretty much impossible to do it legally. So, they're just giving away the money instead.