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What I'm reading in your sentiment is that you believe that such regulation prevents the "hard sales" approach of getting people to invest wonderfully demonstra
by sologoub 15y ago
What I'm reading in your sentiment is that you believe that such regulation prevents the "hard sales" approach of getting people to invest wonderfully demonstrated by the junk bonds and Boiler Room movie. And I agree with you - such crap tactics are what ruins it for the rest of us.
But I also don't believe that simply barring access is the right way to go. In an environment where barriers to entry are falling everywhere, the funding aspect still remains the most difficult. A talented small group of engineers can put together solutions that rivals the best of fortune 100 companies, but those same engineers are usually not capable of marshaling the resources they need to execute, often more efficiently than their big company counterparts.
Start-ups are super risky. If people understand that, and have means to diversify, than we have a good model. To me, Kickstarter is an awesome way to crowdfund for a product or a finite project. By promising something in return, you essentially get a head start on sales revenue, and use it to fund the development.
- asmithmd1 15y agoDo these boiler room operations hurt any more people than what is going on at big banks? Bank of America tellers are only too happy to suggest that a retiree who happens to have a few thousand in the their checking account speak to the nice Merrill Lynch representative.
- a3camero 15y agoTo be fair to big banks (this doesn't sound like me...), the boiler room operator steals all of your money and the bank doesn't. You might not get the return you're expecting but at least they won't straight up steal from you. It is different.