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On it's face, it sounds like the bill would also remove the accredited investor requirement in <$1m angel rounds. Anyone who understands this thing have a read
by phil 15y ago
On it's face, it sounds like the bill would also remove the accredited investor requirement in <$1m angel rounds.
Anyone who understands this thing have a read on whether that is actually so?
- 100k 15y agoThat was my read too (due to what "crowd funding" brings to mind, e.g., Kickstarter). However, this does not seem to be the case. In fact, it only changes the rules about general solicitation. "the prohibition against general solicitation or general advertising contained in section 230.502(c) of such title shall not apply to offers and sales of securities made pursuant to section 230.506, provided that all purchasers of the securities are accredited investors" http://democrats.rules.house.gov/112/text/112_hr2940_txt.pdf http://democrats.rules.house.gov/112/text/112_hr2940_txt.pdf
- HistoryInAction 15y agoThere's the second bill, HR 2930, that concerns crowdfunding: http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112hr2930rh.pdf http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112...
- 100k 15y agoAh, cool. If I'm reading that right, you can raise $10,000 or up to 10% of the investors annual income (whichever is less) as long as you're raising less than $1M (or $2M with audited financial statements, whatever that means). That will open up a lot more people as potential funders.
- clavalle 15y agoThis makes me wonder what the paperwork is going to look like. Can you imagine gathering and verifying paperwork on potentially thousands of investors at an early stage? Talk about a time suck that people trying to get a company off the ground won't want or need.
- danbmil99 15y agoSounds like a nice niche startup to me
- mattblalock 15y agoSounds like a whole bunch of niche startups are on the horizon...
- HistoryInAction 15y agoAs long as individual investments made are less than $10k: `(B) individual investments in the securities are limited to an aggregate annual amount equal to the lesser of-- `(i) $10,000; and `(ii) 10 percent of the investor's annual income; http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112hr2930rh.pdf http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112...
- phil 15y agoThanks for this (and thanks to 100k, too!) Pretty interesting -- if this goes through it seems like you could experiment with funding models somewhere between normal angel investing and the tiny bites that Kickstarter usually deals in.