

New Rules Let Companies Sell Stakes to Investors of Modest Means - mightybyte
http://www.nytimes.com/2015/06/19/business/smallbusiness/new-rules-let-companies-sell-stakes-to-investors-of-modest-means.html

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asift
These new regulations are pretty much meaningless:

>Regulation A deals will not be fast, or cheap. Kendall Almerico, the lawyer
preparing StarShop’s paperwork, says a typical company will need to spend
$50,000 to $100,000 on legal, accounting and filing fees. Every offering must
be reviewed by and gain approval from the S.E.C., a process that takes more
than 300 days, on average.

If anyone is interested in the origins of blue sky laws, this is an
interesting read
([http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?artic...](http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=2679&context=fss_papers))

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vonklaus
an ipo costs ~1M and has recurring fees annually totally about ~1.5M[0]. I
don't think this will be as revolutionary as some people are claiming it will
be, but if there is less regulation you could see companies doing a
kickstarter like model independently as a series A.

> Every offering must be reviewed by and gain approval from the S.E.C., a
> process that takes more than 300 days, on average.

Where did this stat come from? How is there an average if the law and approval
are for something that does not currently exist?

[0][http://www.pwc.com/en_us/us/transaction-
services/publication...](http://www.pwc.com/en_us/us/transaction-
services/publications/assets/pwc-cost-of-ipo.pdf)

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peteretep
As far as I can tell, in the UK all you need to do is put a #CapitalAtRisk
hashtag on your share-sell offering and you're legit...

[https://twitter.com/search?q=CapitalAtRisk](https://twitter.com/search?q=CapitalAtRisk)

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notahacker
Your investors have to have access to credit cards and answer a few multiple
choice questions too.

If you think the kind of people likely to invest in your startup will find the
answers to questions like "do most startups pay dividends?" to be so difficult
as to thwart their attempts to give you money, you could always post the
answers on your blog though.... e.g [https://blog.nudjed.com/seedrs-sign-up-
process/](https://blog.nudjed.com/seedrs-sign-up-process/)

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dummy7953
Pardon my cynicism...

