Following the principals of crowd funding (e.g. crowd vetting, all or nothing funding, small dollar investments, community forum for knowledge sharing), allow SEC registered Internet platforms to offer limited offerings for entrepreneurs and small businesses (small businesses being defined as less than $5 million annual gross income). The window will allow for a maximum capital raise of $1M from micro-angels (capped... more »
Imagine a web site or portal with a variety of different people on it, people looking for career or entrepreneurial assistance. For the sake of argument – let’s limit it to young people. Each of these individuals, let’s call them ChangeMakers – would have to put up a profile or online portfolio. These portfolios would be a “Here I am world, this is what I’m all about and why you should invest in me.” The portfolio could... more »
Please consider looking in to the accredited investor designation. While 1 Million net worth or 200K-300K in income is a good definition by the SEC it limits the amount of people who can invest in a start-up. Why not have it be a % of your net worth or income that you can invest. For example if you have a liquid net worth of 200K allow the investor to invest up to 10% or 20K. California has a rule that could be applied... more »
Currently, start-up companies trying to raise money through innovative crowdfunding sites are treated under the same rules as those with conventional public offerings.
I suggest exempting securities offerings up to $100,000 with $100 maximum per investor from current SEC regulations.