Thanks for a great website and for the help in advance.
In crowd funding, there's a list of investment opportunities(shoes funding target & percentage of ownership of that target) and people invest in whatever they choose. However, offering ownership for investments through equity is impossible due to the SEC which requires registration (IPO) before the issuance of shares(ownership) and publicly advertising and its restricted to accredited investors.
However, can we overcome this by just dividing ownership while forming a new entity (in the case where the entrepreneur hasn't incorporated yet) or refiling/filing a new entity-owning the previous one's assets ( in the case its an established company seeking funding)?
This way, won't it be considered just finding partners to start a business/fund a business rather than seeking investors?
Best,
Zak
In crowd funding, there's a list of investment opportunities(shoes funding target & percentage of ownership of that target) and people invest in whatever they choose. However, offering ownership for investments through equity is impossible due to the SEC which requires registration (IPO) before the issuance of shares(ownership) and publicly advertising and its restricted to accredited investors.
However, can we overcome this by just dividing ownership while forming a new entity (in the case where the entrepreneur hasn't incorporated yet) or refiling/filing a new entity-owning the previous one's assets ( in the case its an established company seeking funding)?
This way, won't it be considered just finding partners to start a business/fund a business rather than seeking investors?
Best,
Zak