It is remarkable to me the lack of rational analysis about equity crowdfunding. Sure, crowdfunding “sounds like” an easy source of capital for startup entrepreneurs, leading to happy entrepreneurs, delighted investors and job creation galore. Few pundits seem to have the depth of knowledge and foresight to look far enough down the equity crowdfunding road […]
Posts Tagged 'crowdfunding'
Angels and venture capitalists will not sign non-disclosure (confidentiality) agreements just to listen to an entrepreneur’s funding presentation, or even to read the entrepreneur’s business plan. Serial entrepreneurs understand this and write their plans without describing the “secret sauce.” Investors will eventually want to validate the intellectual property (IP) prior to investing but not just […]
The U.S. Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders. The assumption has been that companies with 500 investors are quasi-public anyway, and for disclosure and other reasons should be forced to go public when the shareholder number approaches this limit. Since the IPO market […]