4 ms·

Be careful about giving equity via kickstarter -- there are rules about investment solicitation, accredited investors, etc. for private companies.

• ianterrell 15y ago
  Because the law is complex Kickstarter's TOS disallow equity as a reward anyway. ProFounder was set up to cover this case, and gives you guidelines to stay in the clear legally. https://www.profounder.com/ https://www.profounder.com/
  • alain94040 15y ago
    I have been playing in that space since 2008. ProFounder is doing it wrong because technically, people can only invest if they have a pre-existing relationship with the founders, which by definition exludes anyone found through the site. Not good.
    • kalvin 15y ago
      No, ProFounder requires users to send non-transferrable email invitations to their friends and family (or "community"), i.e. pre-existing relationships. Afaik they don't provide a way to meet investors on the site, like you're suggesting. For how they address other potential legal issues, go here: http://www.quora.com/Is-ProFounder-in-violation-of-any-securities-laws-with-their-crowdsourced-model-for-funding-startups?q=profounder http://www.quora.com/Is-ProFounder-in-violation-of-any-secur...
      • nhangen 15y ago
        That's the problem - nobody wants to hit up friends and family members. I think Angel.co does a better job than profounder.