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After Raising $6.7M For Startups And Winning SEC Approval, AngelList Opens Up Investment Platform To More Companies

techcrunch.com

In December, AngelList , a service that matches early-stage startups with investors, debuted the ability to allow accredited investors to actually invest in startups on the platform with as little as $1,000. And today, AngelList is opening the platform up to all startups with top-tier investors. → Learn More.

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10 Tests of Your Modern Entrepreneur Lingo Savvy

Startup Professionals Musings

Sites like KickStarter have for years offered rewards and pre-sales for crowd investments, but real equity won’t be legalized until sometime this year for people other than accredited investors. This usually involves more attention to organizational, operational, and strategic challenges. Super-angels. Osmosis marketing.

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This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) Primarily targets SMBs.

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Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Only 35 nonaccredited investors are allowed to buy private equity in a company's offering. This may take many years, or never happen at all.

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Is crowdfunding legal?

Startup Company Lawyer

Securities sold pursuant to the crowdfunding provisions are not transferable by the purchaser for one-year from the date of purchase, unless the securities are transferred to the issuer, an accredited investor, in a registered offering, or to family of the purchaser. Requirements on Intermediaries.

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Crowdfunding: a roar from a young lion

Berkonomics

Moreover, every year after a successful crowdfunding offering, issuers must file with the SEC and with investors reports of the results of operations and financial statements of the issuer. Issuers are not allowed to advertise the terms of the offering, except for notices to direct investors or through the approved intermediary.

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