Start-Ups

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  • Because the government is permitting small businesses to raise financing without the intervention of a governing body, does not imply that a start-up or small business is free to run around taking money from people without proper documentation and disclosure.  Businesses should always remain cognizant that a company / investor relationship is an ongoing on and communication is key in maintaining this relationship!  Start-ups be thorough in your documentation (or rely on services such as Return on Change to help you out)!
  • Just because Big Brother isn’t watching doesn’t mean you should do whatever you want either! The crowdfunding is completely new and will need the support of all of its users in order to grow into the powerful marketplace we hope it to be!
  • Before the time of this legislation, it was illegal to generally solicit investors for capital.  Now (with certain thresholds) companies will be permitted to email, tweet, and facebook post their requests to garner to support of friends family and networks!.  That’s the new acronym of the future people for seed investment, FFSN!
  • The common misconception is that because the investment world is now open to the public, there will be rampant fraud as many non-savvy investors will not be able to due diligence the investment opportunities to avoid the fraudsters.  However, we are forgetting that this ‘investment’ vehicle is inherently social and relies on the perception of the masses and communities to be successful.  This means you’re going to have thousands of people diligencing an opportunity and unlike professional investors who have to protect their trade secrets, will be more than happy to share their opinion.  One negative opinion on a con man? That investment ‘opportunity’ will most likely not be funded.