[lbo-talk] CrowdFunding law change lobbying ...

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Apr 28 09:38:17 PDT 2010


A friend of mine is working on this and needs a little help. You might find it interesting!

http://www.indiegogo.com/Change-Crowdfunding-Law

Here's the intro in case you don't want to click yet:

---

ABOUT

Crowdfunding sites like IndieGoGo offer VIP Perks but

not shares- because offering profit participation is

illegal. Securities law lets you gamble your retirement

on investments conveyed through the all-controlling

financial system, but you can't invest $50 in someone you

actually know personally, in order to help them start a

small business, write a book, make a film, build an iPhone

app or develop a new product that you believe has commercial

potential.

The SEC can change this situation by introducing a regulatory

exemption that caps individual investments at $100. I believe

that doing this would change everything for crowdfunding, spark

innovation, and help vitalize the economy from the bottom up.

The idea of an exemption based on very low cap on individual

investment is not new; according to the SEC's Anthony Barone,

it has been discussed and brought to the SEC's attention by

academic economists. What has not yet been demonstrated is the

extent of public interest in such an exemption.

This project offers a serious plan for essentially forcing the

SEC to consider this possibility and respond to it publicly.

This issue is more complicated than can be explained on this

short project page, but you can read the prospectus for the

history and background on this project.

---

/jordan



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