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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. I would summarize the qualms and feedback from professional investors as the following: Crowdfunding platform costs trickle down to angel groups.

Equity 411
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5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

I would summarize the qualms and feedback from professional investors as the following: Crowdfunding platform costs trickle down to angel groups. The new audit, due diligence, and liability requirements from the JOBS Act, now levied on equity crowdfunding portals, could dramatically increase the costs and restrictions on angel groups.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Government programs.

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Professional Investors Qualms About Crowdfunding

Startup Professionals Musings

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. I would summarize the views and qualms from professional investors as the following: Crowdfunding platform costs could trickle down to angel groups.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

Given that the Series Seed is issued at a fairly low valuation, anti-dilution protection is probably not that important, as a “down round&# from a low valuation in the Series Seed is unlikely. In a typical venture financing, there is a voting agreement that governs how specific board seats will be filled.

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On the Road to Recap:

abovethecrowd.com

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? A down round is nothing.

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How to Fund a Startup

www.paulgraham.com

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. The lower your costs, the moreoptions you have—not just at this stage, but at every point tillyoure profitable.