Berkonomics

MARCH 8, 2012

And even more recently, “crowd sourcing” has been enabled by the Internet – seeking many investors at a small amount per investment. The problem in taking such money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments.

Cap Table 74

Cap Table Private Placement SEC Accredited Investor 74

Berkonomics

MARCH 7, 2019

These are newer ways to find relatively small amounts using these Internet tools and combining groups of many investors at a small amount per investment. What would the SEC say about your investors? An important exemption. It is worth checking with an attorney to see if such investors are truly exempt.

Cap Table 61

Cap Table SEC Private Placement Accredited Investor 61

Berkonomics

FEBRUARY 27, 2020

And now that “crowd sourcing” has been enabled using the Internet – seeking many investors at a small amount per investment. The problem in taking such money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. The legality issues.

Cap Table 62

Cap Table Private Placement SEC Accredited Investor 62

Startup Company Lawyer

MAY 26, 2012

Crowdfunding: Its Practical Effect May Be Unclear Until SEC Rulemaking is Complete. On April 23, 2012, the SEC published guidance reminding issuers that “any offers or sale of securities purporting to rely on the crowdfunding exemption would be unlawful under federal securities laws” until the SEC adopts new rules.

SEC 58

SEC Securities and Exchange Commission Accredited Investor Private Placement 58

Berkonomics

OCTOBER 24, 2024

And now that “crowd sourcing” is a reality using the Internet – seeking many investors at a small amount per investment – it may be worse. Describing that capital using the phrase “friends, family and fools,” or “FFF,” has become as common as to be trite. It is worth checking with an attorney to see if such investors are truly exempt.

Cap Table 62

Cap Table Private Placement SEC Accredited Investor 62