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Aug. 1, 2012: When Oculus Asked for Donations

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Re: Aug. 1, 2012: When Oculus Asked for Donations

#2

Post by modeless »

This is the real shame in the Oculus acquisition. If Oculus had been able to give away just 10% equity, every single Kickstarter backer would be $20,000 richer today. The sentiment would be completely different. The SEC needs to get in gear and start allowing equity crowdfunding pronto.

The SEC's classification of millionaires as "accredited investors" who get first crack at all the best investment opportunities is exactly the kind of "rich get richer" policy that people ought to be furious about. I think not enough people understand it.

Re: Aug. 1, 2012: When Oculus Asked for Donations

#3

Post by Phlarp »

modeless wrote: post #2

This is the real shame in the Oculus acquisition. If Oculus had been able to give away just 10% equity, every single Kickstarter backer would be $20,000 richer today. The sentiment would be completely different. The SEC needs to get in gear and start allowing equity crowdfunding pronto. The SEC's classification of millionaires as "accredited investors" who get first crack at all the best investment opportunities is e…

Yea, all those early BFL investors are really rolling in their unregulated equity crowd funding cash these days.

Re: Aug. 1, 2012: When Oculus Asked for Donations

#4

Post by general_failure »

modeless wrote: post #2

This is the real shame in the Oculus acquisition. If Oculus had been able to give away just 10% equity, every single Kickstarter backer would be $20,000 richer today. The sentiment would be completely different. The SEC needs to get in gear and start allowing equity crowdfunding pronto. The SEC's classification of millionaires as "accredited investors" who get first crack at all the best investment opportunities is e…

Kickstarter needs a no-acquisition clause

Re: Aug. 1, 2012: When Oculus Asked for Donations

#5

Post by cookingrobot »

For $300 those backers got the promise of an awesome VR headset. I don't see why they should get equity for free on top of that.

It would be nice if kickstarter campaigns could add equity as and option in the reward tiers, but it's not like these people gave their money for nothing in return.

Re: Aug. 1, 2012: When Oculus Asked for Donations

#6

Post by gojomo »

modeless wrote: post #2

This is the real shame in the Oculus acquisition. If Oculus had been able to give away just 10% equity, every single Kickstarter backer would be $20,000 richer today. The sentiment would be completely different. The SEC needs to get in gear and start allowing equity crowdfunding pronto. The SEC's classification of millionaires as "accredited investors" who get first crack at all the best investment opportunities is e…

Indeed, I don't see anywhere else that Americans accept a "wealth test" to exercise a basic economic right (ownership of production).

Note, the accredited-investor rules are not an "ability-to-pay" test. That would be fair: if you can write the check, you're in.

The rules also are not a creditworthiness test: they don't evaluate reliability, and investors want to give money, not take it from others.

And they're not a competence test: you can be credentialed to professionally handle others' investments and businesses (through things like passing the bar or "Series 7" or CPA exams), or otherwise have degrees in law, technology, and business... and still not pass the same "accredited investor" wealth standard that any dolt who inherits a million dollars does, automatically.

The distinction ought to be abolished as a matter of basic fairness.

Re: Aug. 1, 2012: When Oculus Asked for Donations

#7

Post by alexqgb »

modeless wrote: post #2

This is the real shame in the Oculus acquisition. If Oculus had been able to give away just 10% equity, every single Kickstarter backer would be $20,000 richer today. The sentiment would be completely different. The SEC needs to get in gear and start allowing equity crowdfunding pronto. The SEC's classification of millionaires as "accredited investors" who get first crack at all the best investment opportunities is e…

Kickstarter specifically prohibits equity deals with backers, as allowing them would place them in the crosshairs of the SEC.

FYI.

Re: Aug. 1, 2012: When Oculus Asked for Donations

#9

Post by gfodor »

cookingrobot wrote: post #5

For $300 those backers got the promise of an awesome VR headset. I don't see why they should get equity for free on top of that. It would be nice if kickstarter campaigns could add equity as and option in the reward tiers, but it's not like these people gave their money for nothing in return.

I think this would be the idea. If there was even an option for equity, the entire sentiment of a quick flip changes. It becomes less about the company exploiting you and more about you not having enough faith to buy a few shares in addition to the prototype.

People right now currently feel akin to a benefactor who put a kid through college only to have the kid turn their back on them down the road once they're successful.

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