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I think there's a difference between "open investing for equity", and "open investing for a thing that one day may turn in to equity given a certain set of even
by nrmitchi 6y ago
I think there's a difference between "open investing for equity", and "open investing for a thing that one day may turn in to equity given a certain set of events".
The majority of people will assume that "start up investing" or "equity crowdfunding" (or whatever you want to call it) is like the stock market, but on a smaller scale. You invest money, and you get shares in the company.
I don't think the concern is around folks making ill informed choices (Robinhood has shown us that that can happen in the public markets as well), but more around start-up companies taking advantage of the lack of sophistication by the every-day investor in order to push horrendous terms.
- duxup 6y agoI wonder how it would be possible to ... make someone know enough to make an informed choice and still allow more opportunities to invest. I like the idea of opening things up more like this but worry that actual scams could be a problem. It's not investing but similar to kickstarter and etc problems.
- nrmitchi 6y agoProbably by keeping the crowdfunding part, but with reglation around the terms that have to be offered, and actions you're allowed to take after equity crowdfunding. But it's a pretty complex problem.