Anyone who understands this thing have a read on whether that is actually so?
"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 of the securities are accredited investors"
http://democrats.rules.house.gov/112/text/112_hr2940_txt.pdf
http://www.gpo.gov/fdsys/pkg/BILLS-112hr2930rh/pdf/BILLS-112...
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.
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 entrepreneurs that come out of the other side will be that much better the next time. It really opens up the game to a huge number of people that otherwise would not have much hope of even getting 'friends and family' seed money.
A question, though: in a post-"crowdfunding" world, what would a "crowdfunded" round do to your prospects of getting venture capital down the line? Wouldn't it gnarl up your cap table? How long will it take to shake the legal intricacies of this out?
http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR02940:
http://www.opencongress.org/bill/112-h2940/
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H.R.2930 (CrowdSourcing one) still making its way
