Abstract
In order to crowdfund, you need a portal. In this chapter, I expand on the JOBS Act rules governing these critical entities. I also review our estimates, based on SEC data, for total revenue and profit by platform type and for the industry as a whole.
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Notes
- 1.
This financial interest is legal only if it is “compensation for the offer/sale of securities.” Direct investments in companies offering securities on a platform are prohibited. To be legal, these securities must be “the same class … and same terms as those in the offering.”
- 2.
According to the SEC, “an ‘investment company’ is a company (corporation, business trust, partnership, or limited liability company) that issues securities and is primarily engaged in the business of investing in securities.” See www.sec.gov/answers/mfinvco.htm.
- 3.
Colleen Taylor, “Indiegogo Raises $15 Million Series A to Make Crowdfunding Go Mainstream,” TechCrunch, June 6, 2012, http://techcrunch.com/2012/06/06/indiegogo-funding-15-million-crowdfunding/.
- 4.
Om Malik, “Kickstarted: My Conversation with Kickstarter Co-Founder Perry Chen,” Gigaom, May 22, 2012, http://gigaom.com/2012/05/22/kickstarter-founder-perry-chen-intervie/. Om: With the JOBS Act, there is a lot of talk about Kickstarter being used for crowdfunding of startups, etc. What do you make of all that talk?
Perry: Some people have made assumptions about what we would do. We’re not interested in that model.
- 5.
“Raising Capital Online: The New Thundering Herd,” The Economist, June 16, 2012, http://www.economist.com/node/21556973 .
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© 2016 William Michael Cunningham
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Cunningham, W.M. (2016). Portals. In: The JOBS Act. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4842-2409-0_7
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DOI: https://doi.org/10.1007/978-1-4842-2409-0_7
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