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Pascal Levensohn in New York November 8: Speech at Museum of American Finance on Risks to Angel Investors

Pascal's View

I first visited the Museum of American Finance a couple of years ago, and it is not only a great space,it is a useful resource for visitors interested in a wide range of current exhibits on current capital markets topics, as well as documents and artifacts related to capital markets, money and banking.

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New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

This is a concept coined (and trademarked) by Eric Ries a few years ago, primarily for software and web applications. The recently passed JOBS bill now allows even non-accredited investors to contribute small amounts to new startups through “crowd-sourcing” sites, like Kickstarter and Crowdtilt. Lean startup. Crowd funding.

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Is gust.com a difficult platform to replicate?

Gust

There are literally hundreds of platforms currently operating that connect investors and startups, and there have been at least a hundred others that have come and gone. Setting up a clean, effective web site that lists companies seeking funding and provides accounts for investors to interact with them is not rocket science.

Belarus 107
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New Early Stage Financing Options for Entrepreneurs

Gust

This is a concept coined (and trademarked) by Eric Ries a few years ago, primarily for software and web applications. The recently passed JOBS bill now allows even non-accredited investors to contribute small amounts to new startups through “crowd-sourcing” sites, like Kickstarter and Crowdtilt. Lean startup. Crowd funding.

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Crowdfunding? Yes, Maybe, No. Not Yet.

Up and Running

But still, we need a reality check: Startups on Kickstarter don’t sell shares to investors. That’s great, because it’s the best kind of financing, sales, not equity. But they don’t sell shares to investors. Startups can’t legally troll for investors on the web.

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Is crowdfunding legal?

Startup Company Lawyer

In 2005, Kiva launched a micro-finance platform that allows people to lend small amounts of money to entrepreneurs in developing areas. Therefore, after SEC rulemaking is complete, it may be easier for issuers to advertise Rule 506 offerings and raise capital through the sale of securities to accredited investors.

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Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

And for the love of high-speed internet and all things Web 2.0, About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.