4 ms·

New Rules Let Companies Sell Stakes to Investors of Modest Means

28 points by mightybyte 11y ago

asift 11y ago
These new regulations are pretty much meaningless: >Regulation A deals will not be fast, or cheap. Kendall Almerico, the lawyer preparing StarShop’s paperwork, says a typical company will need to spend $50,000 to $100,000 on legal, accounting and filing fees. Every offering must be reviewed by and gain approval from the S.E.C., a process that takes more than 300 days, on average. If anyone is interested in the origins of blue sky laws, this is an interesting read (http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=2679&context=fss_papers http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?artic...)
- vonklaus 11y ago
  an ipo costs ~1M and has recurring fees annually totally about ~1.5M[0]. I don't think this will be as revolutionary as some people are claiming it will be, but if there is less regulation you could see companies doing a kickstarter like model independently as a series A. > Every offering must be reviewed by and gain approval from the S.E.C., a process that takes more than 300 days, on average. Where did this stat come from? How is there an average if the law and approval are for something that does not currently exist? [0]http://www.pwc.com/en_us/us/transaction-services/publications/assets/pwc-cost-of-ipo.pdf http://www.pwc.com/en_us/us/transaction-services/publication...
peteretep 11y ago
As far as I can tell, in the UK all you need to do is put a #CapitalAtRisk hashtag on your share-sell offering and you're legit... https://twitter.com/search?q=CapitalAtRisk https://twitter.com/search?q=CapitalAtRisk
- notahacker 11y ago
  Your investors have to have access to credit cards and answer a few multiple choice questions too. If you think the kind of people likely to invest in your startup will find the answers to questions like "do most startups pay dividends?" to be so difficult as to thwart their attempts to give you money, you could always post the answers on your blog though.... e.g https://blog.nudjed.com/seedrs-sign-up-process/ https://blog.nudjed.com/seedrs-sign-up-process/
dummy7953 11y ago
Pardon my cynicism...

28 points by mightybyte 11y ago

asift 11y ago

These new regulations are pretty much meaningless: >Regulation A deals will not be fast, or cheap. Kendall Almerico, the lawyer preparing StarShop’s paperwork, says a typical company will need to spend $50,000 to $100,000 on legal, accounting and filing fees. Every offering must be reviewed by and gain approval from the S.E.C., a process that takes more than 300 days, on average. If anyone is interested in the origins of blue sky laws, this is an interesting read (http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=2679&context=fss_papers http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?artic...)

vonklaus 11y ago
an ipo costs ~1M and has recurring fees annually totally about ~1.5M[0]. I don't think this will be as revolutionary as some people are claiming it will be, but if there is less regulation you could see companies doing a kickstarter like model independently as a series A. > Every offering must be reviewed by and gain approval from the S.E.C., a process that takes more than 300 days, on average. Where did this stat come from? How is there an average if the law and approval are for something that does not currently exist? [0]http://www.pwc.com/en_us/us/transaction-services/publications/assets/pwc-cost-of-ipo.pdf http://www.pwc.com/en_us/us/transaction-services/publication...

peteretep 11y ago

As far as I can tell, in the UK all you need to do is put a #CapitalAtRisk hashtag on your share-sell offering and you're legit... https://twitter.com/search?q=CapitalAtRisk https://twitter.com/search?q=CapitalAtRisk

notahacker 11y ago
Your investors have to have access to credit cards and answer a few multiple choice questions too. If you think the kind of people likely to invest in your startup will find the answers to questions like "do most startups pay dividends?" to be so difficult as to thwart their attempts to give you money, you could always post the answers on your blog though.... e.g https://blog.nudjed.com/seedrs-sign-up-process/ https://blog.nudjed.com/seedrs-sign-up-process/

dummy7953 11y ago

Pardon my cynicism...