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The playing field in the private market should be leveled with the JOBS Act that will allow equity crowdfunding. Though I think the rules were supposed to be c
by will_brown 11y ago
The playing field in the private market should be leveled with the JOBS Act that will allow equity crowdfunding. Though I think the rules were supposed to be created a year after the law went into effect, and it's about 3 years later.
While in theory such a system should bring a little democracy/meritocracy to these future unicorns of tech (no longer shall VC money/equity dictate winners) in practice I think we will see snake oil salesmen and big marketing firms ruin the trust for everyone.
- bsbechtel 11y agoKeep in mind that putting money into a company is only half the equation. Getting it back out is the other half. The JOBS Act is saying anyone can invest, but those small time investors will now face the same risks employees at start ups that don't IPO face right now - their stock is worth essentially nothing. This is also the same problem facing 2/3rds of our economy that are small businesses. They can't get access to financing for R&D because R&D doesn't produce immediate cash flow to service debt, and equity investors will never get their money out of a small business.