

 What do you think of this 10K micro-funding idea? - jhubert
http://blog.tweetfolk.com/post/2910482706/im-ready-to-make-a-10-000-investment-in-you

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brk
I think it may well likely violate SEC and/or lottery regulations.

From what I read, it sounds like you're running a lottery (buy a square for a
chance to win $10k).

Then on top of that, you are calling the $10k an 'investment', which I _think_
means that YOU have to be potentially considered an accredited investor if
it's an investment and not a loan.

Aside from that, the kind of business that only needs a $10k investment is
also likely to be one that it will be a VERY long time before that business
can shake loose $10k of their own to give away as an investment (please deal
with the legal issues of doing so)

I seems like a nice idea, fraught with grey legalities that you should
probably at least get professional advice on.

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jhubert
According to the lawyer that I spoke with, I think I'm ok from a legal stance
because you're not actually buying a chance to win 10k. You're buying a
product (advertising on TweetFolk.com), and I'm simply selecting an idea from
the pool of customers and making an investment in them.

From an accredited investor point of view, I don't think that applies. I've
spoken with a number of VC friends of mine and they said that I'm in the
clear. I can give 10K to anyone I want, from my wife to a random stranger I've
never met before. The terms are just based on the agreement.

As for shaking off $10K being a very long time, I disagree. Many startups kick
off with 10K and make a profit in their first year, especially in the product
space. 10K is enough money for a young person to leave their job for a few
months to build an invoice suite or iPhone application. It's just enough
freedom to let you move on your idea.

