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did reg A+ just make solo transactional a viable practice?

think about it – there are going to be SO MANY PEOPLE w...
french heaven background story
  03/26/15
OFS. I put in my two weeks notice as soon as I heard the new...
Honey-headed bateful roommate
  03/26/15
if the required disclosures are actually as extensive as an ...
french heaven background story
  03/26/15
I was joking in my last post but in all fairness this is act...
Honey-headed bateful roommate
  03/26/15
I suppose another advantage is that it is unlikely that the ...
Multi-colored crystalline reading party foreskin
  03/26/15
IDK man, for a $50 million financing don't you think there's...
Honey-headed bateful roommate
  03/26/15
$50 million? wouldn't this be for more like $5 million?
Irate step-uncle's house headpube
  03/26/15
I was thinking more like 500 k.
Multi-colored crystalline reading party foreskin
  03/26/15
yeah that's probably more accurate. the biggest Kickstarter ...
Irate step-uncle's house headpube
  03/26/15
Yeah but kickstarter is essentially a donation platform (or ...
Honey-headed bateful roommate
  03/26/15
I don't think we're talking 50 big bills, my man. Also a cla...
Multi-colored crystalline reading party foreskin
  03/26/15
Yeah, I'm guessing big financings (i.e., ones in the tens of...
Honey-headed bateful roommate
  03/26/15
I'm intrigued. This might make early-stage patent prosecutio...
Alcoholic church pistol
  03/26/15
please delete all poasts ITT. ty
hairraiser sienna principal's office voyeur
  03/26/15
lol
adulterous love of her life
  03/26/15
...
Supple seedy station filthpig
  03/26/15
isn't this ideal for real estate development? building a sho...
Irate step-uncle's house headpube
  03/26/15
what type of filing are you going to have to fill out? have...
Sticky lodge factory reset button
  03/26/15
http://www.sec.gov/about/forms/form1-a.pdf
Irate step-uncle's house headpube
  03/26/15
please edit out ty
hairraiser sienna principal's office voyeur
  03/26/15
I'm just a bro in San diego that would team up with you bros...
spectacular mauve stage boiling water
  03/26/15
that chart at the end of the blog is extremely helpful to un...
Cheese-eating shrine wagecucks
  03/26/15
what exactly is the advantage of this? isn't raising $$ in t...
Sepia codepig
  03/27/15
you can raise from non-accredited investors and you can publ...
Irate step-uncle's house headpube
  03/27/15
this exactly. also relaxes the # of investors you can have b...
french heaven background story
  03/27/15
you need audited financials apparently. so this is a real b...
Elite Pocket Flask
  03/27/15
for < 20m it's just reviewed financials, friend. given an...
french heaven background story
  03/27/15
http://www.lawgives.net/blog/equity-crowdfunding-what-does-r...
Irate step-uncle's house headpube
  03/27/15
The answer may surprise you.
beady-eyed theater
  03/27/15
benzo please delete this thread. Thank!
hairraiser sienna principal's office voyeur
  03/27/15


Poast new message in this thread



Reply Favorite

Date: March 26th, 2015 3:33 PM
Author: french heaven background story

think about it – there are going to be SO MANY PEOPLE who want to "kickstart" their business, but doing it under reg A+ requires an s-1 style disclosure. for the extremely early-stage/vaporware companies that are going to be doing this, putting together that disclosure is not going to be that onerous – easy enough to charge some kind of moderate fee to put it together and a more substantial one if the financing actually goes through and the client has money.

EXCITING SHIT BROS.

edit: http://www.crowdfundinsider.com/2015/03/65007-the-reg-a-bombshell-50m-unaccredited-equity-crowdfunding-title-iv-takes-center-stage/

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27559699)



Reply Favorite

Date: March 26th, 2015 3:51 PM
Author: Honey-headed bateful roommate

OFS. I put in my two weeks notice as soon as I heard the news. Am now frantically reading all the shitlaw threads.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27559833)



Reply Favorite

Date: March 26th, 2015 4:02 PM
Author: french heaven background story

if the required disclosures are actually as extensive as an S-1, it will be a pretty big pain in the ass to do this for an established company – BUT if you can get in early, handle the incorporation yourself, then just have a set of form documents that will be 95% applicable to any new company filing you do, you're golden.

the best part is, all these dudes in their garages will be playing with house money. charge a few grand (and some options) up front for incorporation + disclosure filing (to filter out the complete idiots, as much as for any other reason) and take substantially more in deferred compensation that becomes payable after the funding dates. most of these guys will fail spectacularly, as with all VC, but a few will succeed.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27559926)



Reply Favorite

Date: March 26th, 2015 4:18 PM
Author: Honey-headed bateful roommate

I was joking in my last post but in all fairness this is actually pretty intriguing. The big knock on working with startups has always been that they never have cash, which this might actually ameliorate. I'd be careful before getting carried away with deferred compensation though -- just seems like so many service providers (attorneys included) got massively burned by taking payments in equity rather than in cash during the late 90s...

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560037)



Reply Favorite

Date: March 26th, 2015 4:29 PM
Author: Multi-colored crystalline reading party foreskin

I suppose another advantage is that it is unlikely that the kickstartee investors will sue you the attorney for preparing an inadequate disclosure when things go south. This is traditionally the big bummer of this kind of work.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560114)



Reply Favorite

Date: March 26th, 2015 4:33 PM
Author: Honey-headed bateful roommate

IDK man, for a $50 million financing don't you think there's some hungry plaintiff's lawyer who might try to cobble together a class action?

(Not a litigation masterman)

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560145)



Reply Favorite

Date: March 26th, 2015 4:43 PM
Author: Irate step-uncle's house headpube

$50 million? wouldn't this be for more like $5 million?

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560191)



Reply Favorite

Date: March 26th, 2015 4:45 PM
Author: Multi-colored crystalline reading party foreskin

I was thinking more like 500 k.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560208)



Reply Favorite

Date: March 26th, 2015 4:48 PM
Author: Irate step-uncle's house headpube

yeah that's probably more accurate. the biggest Kickstarter project ever only raised $8.7 million, and that was a cash-in on an enormous brand built up over almost a decade:

https://www.kickstarter.com/projects/elanlee/exploding-kittens

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560228)



Reply Favorite

Date: March 26th, 2015 5:06 PM
Author: Honey-headed bateful roommate

Yeah but kickstarter is essentially a donation platform (or a pre-ordering platform, depending on the type of project). Equity funding is different. I'm not going to give more than $100 to a kickstarter campaign because I'm not getting that money back... but if I'm looking to make an investment (and generate returns), I'll have to put in a significant amount of money to generate significant returns.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560305)



Reply Favorite

Date: March 26th, 2015 4:45 PM
Author: Multi-colored crystalline reading party foreskin

I don't think we're talking 50 big bills, my man. Also a class action against the attorneys who handled the disclosures? Idk

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560206)



Reply Favorite

Date: March 26th, 2015 5:03 PM
Author: Honey-headed bateful roommate

Yeah, I'm guessing big financings (i.e., ones in the tens of millions range) will be relatively rare, but you never know.

And again, I am not a litigation masterman, but I am assuming that if the attorney fucked up a disclosure, a class action would be brought against the company, and once the company lost they would turn around and sue the attorney for malpractice.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560295)



Reply Favorite

Date: March 26th, 2015 4:40 PM
Author: Alcoholic church pistol

I'm intrigued. This might make early-stage patent prosecution even more viable.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560177)



Reply Favorite

Date: March 26th, 2015 4:23 PM
Author: hairraiser sienna principal's office voyeur

please delete all poasts ITT. ty

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560081)



Reply Favorite

Date: March 26th, 2015 4:45 PM
Author: adulterous love of her life

lol

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560209)



Reply Favorite

Date: March 26th, 2015 5:05 PM
Author: Supple seedy station filthpig



(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560301)



Reply Favorite

Date: March 26th, 2015 5:05 PM
Author: Irate step-uncle's house headpube

isn't this ideal for real estate development? building a shopping center, hotel or small office building is right in that $10M to $50M range.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560300)



Reply Favorite

Date: March 26th, 2015 5:06 PM
Author: Sticky lodge factory reset button

what type of filing are you going to have to fill out? have they released them yet?

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560304)



Reply Favorite

Date: March 26th, 2015 5:20 PM
Author: Irate step-uncle's house headpube

http://www.sec.gov/about/forms/form1-a.pdf

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560368)



Reply Favorite

Date: March 26th, 2015 5:27 PM
Author: hairraiser sienna principal's office voyeur

please edit out ty

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27560393)



Reply Favorite

Date: March 26th, 2015 10:17 PM
Author: spectacular mauve stage boiling water

I'm just a bro in San diego that would team up with you bros on this and do some moonlighting

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27562182)



Reply Favorite

Date: March 26th, 2015 10:30 PM
Author: Cheese-eating shrine wagecucks

that chart at the end of the blog is extremely helpful to understanding this issue

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27562288)



Reply Favorite

Date: March 27th, 2015 12:21 AM
Author: Sepia codepig

what exactly is the advantage of this? isn't raising $$ in these amounts just generally going to be a private placement? i dunno. seems nigger

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27563007)



Reply Favorite

Date: March 27th, 2015 12:24 AM
Author: Irate step-uncle's house headpube

you can raise from non-accredited investors and you can publicly advertise.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27563024)



Reply Favorite

Date: March 27th, 2015 12:38 AM
Author: french heaven background story

this exactly. also relaxes the # of investors you can have before becoming a reporting company – other methods are at best 500 unaccredited/2000 total. so now you can fund your commercial office building with 20,000 $100 investments with no additional reporting requirements.

now, the number of people who will actually raise that is small. but it's not zero. and the number of people who try, especially at first, will be high.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27563099)



Reply Favorite

Date: March 27th, 2015 12:40 AM
Author: Elite Pocket Flask

you need audited financials apparently. so this is a real business not some garage idea.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27563105)



Reply Favorite

Date: March 27th, 2015 12:47 AM
Author: french heaven background story

for < 20m it's just reviewed financials, friend. given an early stage company the cost is not high.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27563126)



Reply Favorite

Date: March 27th, 2015 5:15 PM
Author: Irate step-uncle's house headpube

http://www.lawgives.net/blog/equity-crowdfunding-what-does-regulation-a-mean-

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27566289)



Reply Favorite

Date: March 27th, 2015 5:15 PM
Author: beady-eyed theater

The answer may surprise you.

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27566294)



Reply Favorite

Date: March 27th, 2015 5:37 PM
Author: hairraiser sienna principal's office voyeur

benzo please delete this thread.

Thank!

(http://www.autoadmit.com/thread.php?thread_id=2839552&forum_id=2#27566432)