This one is more interesting: Can this be called the Facebook bill? It moves the 500 shareholder limit to 1000.
Crowdfunding bill passes in the House
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Re: Crowdfunding bill passes in the House
#12Sweet! I was hoping they would break this part out into its own bill. This is true economic jet fuel. Most of the jobs package was not terribly exciting but when I came across this bit I truly got jazzed about the possibilities. I hope the SEC doesn't drag their feet after this is passed. Even if we end up with a ton of failed companies from this and a lot of burned investors the individual risk will be low and the e…
We will end up with a whole bunch of pyramid schemes advertised on lamp posts that use this as a way of separating idiots from their money
Re: Crowdfunding bill passes in the House
#13So... when can we mere mortals join Yuri Milner et al. in investing in YC companies?
Re: Crowdfunding bill passes in the House
#14Earlier quoted context omitted.
That was my read too (due to what "crowd funding" brings to mind, e.g., Kickstarter). However, this does not seem to be the case. In fact, it only changes the rules about general solicitation. "the prohibition against general solicitation or general advertising contained in section 230.502(c) of such title shall not apply to offers and sales of securities made pursuant to section 230.506, provided that all purchasers…
There's the second bill, HR 2930, that concerns crowdfunding: http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112...
Ah, cool. If I'm reading that right, you can raise $10,000 or up to 10% of the investors annual income (whichever is less) as long as you're raising less than $1M (or $2M with audited financial statements, whatever that means).
That will open up a lot more people as potential funders.
Re: Crowdfunding bill passes in the House
#15HR 2930 passed today by a count of 407 to 17.
Re: Crowdfunding bill passes in the House
#16Earlier quoted context omitted.
There's the second bill, HR 2930, that concerns crowdfunding: http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112...
Ah, cool. If I'm reading that right, you can raise $10,000 or up to 10% of the investors annual income (whichever is less) as long as you're raising less than $1M (or $2M with audited financial statements, whatever that means). That will open up a lot more people as potential funders.
This makes me wonder what the paperwork is going to look like.
Can you imagine gathering and verifying paperwork on potentially thousands of investors at an early stage? Talk about a time suck that people trying to get a company off the ground won't want or need.
Re: Crowdfunding bill passes in the House
#17Earlier quoted context omitted.
Ah, cool. If I'm reading that right, you can raise $10,000 or up to 10% of the investors annual income (whichever is less) as long as you're raising less than $1M (or $2M with audited financial statements, whatever that means). That will open up a lot more people as potential funders.
This makes me wonder what the paperwork is going to look like. Can you imagine gathering and verifying paperwork on potentially thousands of investors at an early stage? Talk about a time suck that people trying to get a company off the ground won't want or need.
Sounds like a nice niche startup to me
Re: Crowdfunding bill passes in the House
#18On it's face, it sounds like the bill would also remove the accredited investor requirement in Anyone who understands this thing have a read on whether that is actually so?
As long as individual investments made are less than $10k: `(B) individual investments in the securities are limited to an aggregate annual amount equal to the lesser of-- `(i) $10,000; and `(ii) 10 percent of the investor's annual income; http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112...
Thanks for this (and thanks to 100k, too!)
Pretty interesting -- if this goes through it seems like you could experiment with funding models somewhere between normal angel investing and the tiny bites that Kickstarter usually deals in.
Re: Crowdfunding bill passes in the House
#19Earlier quoted context omitted.
This makes me wonder what the paperwork is going to look like. Can you imagine gathering and verifying paperwork on potentially thousands of investors at an early stage? Talk about a time suck that people trying to get a company off the ground won't want or need.
Sounds like a nice niche startup to me
Sounds like a whole bunch of niche startups are on the horizon...
Re: Crowdfunding bill passes in the House
#20So... when can we mere mortals join Yuri Milner et al. in investing in YC companies?
you already can at microventures.com