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I think it is a salient point that one of the reasons these "voluntary transactions" are not happening in the rest of the country is because the government has

by nirvana 15y ago

I think it is a salient point that one of the reasons these "voluntary transactions" are not happening in the rest of the country is because the government has already stepped in. I would be an angel investor, if the SEC would let me. It is silly that I could blow $20k on a bad stock investment, but can't put it into a tiny startup. The regulatory burden and the prohibition on "non accredited investors" quells a lot of support the entreprenurial community could use. Interestingly, you sometimes read stories about immigrants who came to the USA, built small businesses, and then helped later immigrants with investments and loans... resulting in thriving communities (the korean grocer community in LA is an example I heard about.) They wouldn't have been able to do this if they had been following SEC rules!

muhfuhkuh 15y ago
"The regulatory burden and the prohibition on "non accredited investors" quells a lot of support the entreprenurial community could use." So, "friends and family" start-up money is illegal? When did that happen?
- nirvana 15y ago
  I didn't say they were illegal, I said there was a regulatory burden and prohibition: "If, however, not all of the investors are accredited, founders will need to provide a lot more disclosure to the investors, including a full-blown private placement memorandum, risk factors and financial statements. Also, note that all non-accredited investors in a Rule 506 offering must be sophisticated, which means that the company must reasonably believe that non-accredited investors (either alone or together with their investment representatives) have sufficient financial and business knowledge to allow them to evaluate the risks and merits of an investment." Its prohibited to take investments from non-accreddited investors in the straightforward manner you can from accredited investors, and if you do, you have a greater burden, and additional risk to bear.
nkassis 15y ago
One of the cool thing about this job bill is crowdfunding might be now legal. It could be cool to be allow to put under 100 bucks to fund a startup idea. You could spread that 20k around.

by nirvana 15y ago

muhfuhkuh 15y ago

"The regulatory burden and the prohibition on "non accredited investors" quells a lot of support the entreprenurial community could use." So, "friends and family" start-up money is illegal? When did that happen?

nirvana 15y ago
I didn't say they were illegal, I said there was a regulatory burden and prohibition: "If, however, not all of the investors are accredited, founders will need to provide a lot more disclosure to the investors, including a full-blown private placement memorandum, risk factors and financial statements. Also, note that all non-accredited investors in a Rule 506 offering must be sophisticated, which means that the company must reasonably believe that non-accredited investors (either alone or together with their investment representatives) have sufficient financial and business knowledge to allow them to evaluate the risks and merits of an investment." Its prohibited to take investments from non-accreddited investors in the straightforward manner you can from accredited investors, and if you do, you have a greater burden, and additional risk to bear.

nkassis 15y ago

One of the cool thing about this job bill is crowdfunding might be now legal. It could be cool to be allow to put under 100 bucks to fund a startup idea. You could spread that 20k around.