4 ms·

The new general solicitation rules permit a company to solicit investment publicly if certain requirements are met. One of those requirements is that the compan

The new general solicitation rules permit a company to solicit investment publicly if certain requirements are met. One of those requirements is that the company file a Form D with the SEC 15 days before its offering is advertised, so I don't see how it's possible for a company to be soliciting publicly today. IANAL but I would be incredibly uncomfortable as a founder if one of my investors was taking the new rules to mean that he could solicit investment publicly on my company's behalf.

pbreit 13y ago
Maybe they submitted the Form D 15 days ago?
- 7Figures2Commas 13y ago
  There's none that I can find on sec.gov.
  - pbreit 13y ago
    http://lmgtfy.com/?q=Sec+form+d http://lmgtfy.com/?q=Sec+form+d But I suspect you'd get such a thing from a lawyer.
    - 7Figures2Commas 13y ago
      Apparently you didn't understand my comment. The company is Shyp Inc. http://www.sec.gov/cgi-bin/browse-edgar?company=shyp&match=contains&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany http://www.sec.gov/cgi-bin/browse-edgar?company=shyp&match=c... "No matching companies."
- kevingibbon 13y ago
  Take a look at Wefunder response above. "waiting period for Form D is a proposed rule that has never been voted on"
deleted 13y ago
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- 7Figures2Commas 13y ago
  Are you assuming that every successful/wealthy businessperson retains and consults with counsel before taking action? That's quite an assumption and one that, in my personal experience at least, is not warranted. You can read the SEC's rules on general solicitation. They're fairly clear, and they pertain to a company's ability to solicit investment publicly. As such, even if what Tim is doing as an investor in the company (and not a representative of the company itself) is permissible, I don't see how it relates to the new rules, which makes the mention of them in his post all the more odd.
  - deleted 13y ago
    [deleted]
npt4279 13y ago
That's not exactly true. I'm the founder of Wefunder, so I know a fair bit about this. The 15 day waiting period for Form D is a proposed rule that has never been voted on. The law of the land - right now - does not require it. That's why we have 25 or so companies on Wefunder fundraising today. I wrote a blog article explaining this all in excruciating detail at: https://wefunder.com/post/37-what-founders-need-to-know-about-accredited-crowdfunding https://wefunder.com/post/37-what-founders-need-to-know-abou...
- 7Figures2Commas 13y ago
  Good post. Thanks for sharing. I'd be fascinated to hear your thoughts about investors in a company soliciting investment on their behalf as is the case here. Some of the comments on Tim's blog are cringe-worthy: ---- Hi Tim, Thank you for this opportunity, I was just looking into Angel investing but found out that I lack the capital required for most investments. Does your offer apply to international backers? I’m based in Europe. ---- just funded. question – if I sign up for automated backing, is that what it says it is, ie I am committing $2500 every time you make an investment? or – is it guarantee that I can back but get approval before I have made the commitment? thanks! ---- Does the money in a 401k count when calculating the net worth for an accredited investor? ---- Gak, I don’t fulfill the needs to be accredited, so close though. I’d love to invest with you :( I even dropped my lunch and ran home from campus to jump on my computer. I guess I will have to wait. ---- In order to invest as a syndicate it states; “You must be accredited to invest.” How does an individual invest if they are not accredited???

pbreit 13y ago

Maybe they submitted the Form D 15 days ago?

7Figures2Commas 13y ago
There's none that I can find on sec.gov.
- pbreit 13y ago
  http://lmgtfy.com/?q=Sec+form+d http://lmgtfy.com/?q=Sec+form+d But I suspect you'd get such a thing from a lawyer.
  - 7Figures2Commas 13y ago
    Apparently you didn't understand my comment. The company is Shyp Inc. http://www.sec.gov/cgi-bin/browse-edgar?company=shyp&match=contains&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany http://www.sec.gov/cgi-bin/browse-edgar?company=shyp&match=c... "No matching companies."
kevingibbon 13y ago
Take a look at Wefunder response above. "waiting period for Form D is a proposed rule that has never been voted on"

deleted 13y ago

[deleted]

7Figures2Commas 13y ago
Are you assuming that every successful/wealthy businessperson retains and consults with counsel before taking action? That's quite an assumption and one that, in my personal experience at least, is not warranted. You can read the SEC's rules on general solicitation. They're fairly clear, and they pertain to a company's ability to solicit investment publicly. As such, even if what Tim is doing as an investor in the company (and not a representative of the company itself) is permissible, I don't see how it relates to the new rules, which makes the mention of them in his post all the more odd.
- deleted 13y ago
  [deleted]

npt4279 13y ago

That's not exactly true. I'm the founder of Wefunder, so I know a fair bit about this. The 15 day waiting period for Form D is a proposed rule that has never been voted on. The law of the land - right now - does not require it. That's why we have 25 or so companies on Wefunder fundraising today. I wrote a blog article explaining this all in excruciating detail at: https://wefunder.com/post/37-what-founders-need-to-know-about-accredited-crowdfunding https://wefunder.com/post/37-what-founders-need-to-know-abou...

7Figures2Commas 13y ago
Good post. Thanks for sharing. I'd be fascinated to hear your thoughts about investors in a company soliciting investment on their behalf as is the case here. Some of the comments on Tim's blog are cringe-worthy: ---- Hi Tim, Thank you for this opportunity, I was just looking into Angel investing but found out that I lack the capital required for most investments. Does your offer apply to international backers? I’m based in Europe. ---- just funded. question – if I sign up for automated backing, is that what it says it is, ie I am committing $2500 every time you make an investment? or – is it guarantee that I can back but get approval before I have made the commitment? thanks! ---- Does the money in a 401k count when calculating the net worth for an accredited investor? ---- Gak, I don’t fulfill the needs to be accredited, so close though. I’d love to invest with you :( I even dropped my lunch and ran home from campus to jump on my computer. I guess I will have to wait. ---- In order to invest as a syndicate it states; “You must be accredited to invest.” How does an individual invest if they are not accredited???