Crowd Investing: Wefunder
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Crowd Investing: Wefunder
1–10 of 62 posts
Re: Crowd Investing: Wefunder
#2I think the need to stop SOPA and the need to legalize this funding model are apples and oranges. I would love to see some changes to funding laws but many of these laws exist to prevent the defrauding of smaller, less "sophisticated" investors. Simply making the investment legal wouldn't do much without modifying the disclosure requirements the start-up faces. These disclosures will remain very important to prevent scams.
So, great idea but not simple. And not a "cause" like fighting SOPA was...
Re: Crowd Investing: Wefunder
#3There used to be a time when anyone could sell shares in any company. That didn't work out and so we got the Securities and Exchange Act of 1933. Crowd-funding isn't fatally flawed, but it needs a lot more time to integrate the last 400 years of capital market development history.
Re: Crowd Investing: Wefunder
#4All Americans—not just the wealthy and well-connected ...
How about we turn that into:
All people—not just the wealthy and well-connected Americans ...
Re: Crowd Investing: Wefunder
#5I think the need to stop SOPA and the need to legalize this funding model are apples and oranges. I would love to see some changes to funding laws but many of these laws exist to prevent the defrauding of smaller, less "sophisticated" investors. Simply making the investment legal wouldn't do much without modifying the disclosure requirements the start-up faces. These disclosures will remain very important to prevent…
To me it's about getting congress to legislate in favor of startups and young tech companies rather than big business interests. With the SOPA protests, we showed what is possible with a grassroots effort. I think a similar effort could work with startup funding.
Re: Crowd Investing: Wefunder
#6I think the need to stop SOPA and the need to legalize this funding model are apples and oranges. I would love to see some changes to funding laws but many of these laws exist to prevent the defrauding of smaller, less "sophisticated" investors. Simply making the investment legal wouldn't do much without modifying the disclosure requirements the start-up faces. These disclosures will remain very important to prevent…
Agree that it's largely apples and oranges. I think the poster was more calling attention to the fact that SOPA showed a lot of people that their voices do matter, and can affect change in government. So in that way, at least, they're related.
Fraud is certainly a concern, and the reason that the laws were introduced in the 1930s in the first place. But the S.1791 bill has provisions for dealing with this through (relatively) strict individual investing limits and reputation via crowdfunding intermediaries. A balance needs to be struck between protecting "less sophisticated" investors and giving those of us who want the opportunity the chance to get involved, help support entrepreneurs, and create jobs (on main street and in silicon valley). There's still a lot to be hashed out of course, but this would be a step in the right direction.
Disclaimer: I'm one of the people who worked to put the petition together.
Re: Crowd Investing: Wefunder
#7This is super important. Everyday Americans should have the right to invest in businesses. Think of the jobs we could create? Government shouldn't be telling me I dont know what Im doing if I want to help a friend start a company that I think can succeed. I get that unsophisticated investors need some protection, but $1000 seems like a reasonable risk to allow folks to take on something they believe in.
Re: Crowd Investing: Wefunder
#8There used to be a time when anyone could sell shares in any company. That didn't work out and so we got the Securities and Exchange Act of 1933. Crowd-funding isn't fatally flawed, but it needs a lot more time to integrate the last 400 years of capital market development history.
Limiting an individual's investment to a maximum of $1000 goes a long way to making sure Grandma doesn't lose her life's savings. As does the requirement for companies to use an Internet intermediary that performs background checks, verifies identity, holds funds in escrow, etc. The world is different from the 1930's.
Re: Crowd Investing: Wefunder
#9There used to be a time when anyone could sell shares in any company. That didn't work out and so we got the Securities and Exchange Act of 1933. Crowd-funding isn't fatally flawed, but it needs a lot more time to integrate the last 400 years of capital market development history.
Limiting an individual's investment to a maximum of $1000 goes a long way to making sure Grandma doesn't lose her life's savings. As does the requirement for companies to use an Internet intermediary that performs background checks, verifies identity, holds funds in escrow, etc. The world is different from the 1930's.
What's the difference between being able to invest $1000 and $0? That's not helpful to anybody. If I want to invest $30,000, I have to go find 30 startups? That doesn't make any sense.
Re: Crowd Investing: Wefunder
#10I fully support this! To someone's point, we have an outdated system of balances that are based on 400 year old common law, and put in place as a consequence of the great depressions. S.1791 is a good bill, that puts the proper protections, capping investments at $1k. Not riskless, but appropriate amount of risk for investing. A fairer shake than the individual investor gets in the days of algorithmic, fraud ridden Wall street, or for that matter, the keno tickets the govt is happy to let them purchase.