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I -guess- each $300 backer could've received $150,000 of stock/cash... ...if this kickstarter happened 6 months from now, as an equity kickstarter. The 6 mont
by philmcc 13y ago
I -guess- each $300 backer could've received $150,000 of stock/cash...
...if this kickstarter happened 6 months from now, as an equity kickstarter.
The 6 month number is sort of arbitrary, but the SEC is currently evaluating Regulation Crowdfunding. Title III of the JOBS act.
(for more info, here
https://blogs.law.harvard.edu/corpgov/2013/12/06/jobs-act-title-iii-crowdfunding-moves-closer-to-reality/ https://blogs.law.harvard.edu/corpgov/2013/12/06/jobs-act-ti...)
Regulation Crowdfunding will allow "funding portals" (kickstarter/indiegogo/etc) to facilitate equity based crowdfunding, with a limit of up to $1,000,000.
We'll pretend that Oculus at $1mm KS has the same destiny as Oculus as a $2.4mm KS. [I think in an equity world, people would be less inclined to invest after that wall is hit.]
We'll ALSO pretend (here's the bigger stretch) that the subsequent rounds of financing at $16mm and $75mm somehow magically didn't affect the equity of the seed round. [Hahaha, hilarious.]
If the KS had stated that the $1mm was to own 25% of the company (I bet he'd've done more, but we'll go low) that means that each $300 backing is equivalent to %0.0003 of $1mm.
%0.0003 of 25% equity is %.000075 of Oculus.
%.000075 of 2 billion dollars is $150,000.
[I think. %50 chance I mucked this math up at some point.]
- bernardlunn 13y agoI was only suggesting that the people who pony up the early cash get some token equity. Lets say give up 5% to enthusiastic early adopters who share your passion rather than 25% to angels. If say the $300 netted you $3,000 bonus on exit, you can have a party and celebrate the founder's good fortune. Its a win/win (founders get lower cost of capital than angel route, early adopters make some cash. Methinks we will see more of this, but only time will tell.