August 20, 2013
We were really excited about the potential with the passage of the JOBS act, but the onerous registration requirements, while meaning well, serve to effectively limit our ability to do so.
We're a small 2-person startup located in Utah, and we'd like to be able to raise money on sites like Crowdfunder, Kickstarter and the like, and in exchange for people believing in us early on, we want to give them a way to have a stake in our success.
Angel list said it best. "Today, startups raise money without bankers, through informal conversations with investors, and they're always in fundraising mode. It is unfeasible to notify the SEC in advance, file documents every time there is a new communication with investors and include boilerplate with every communication. Worse, since everything is public, startups will see other startups break the rules and assume there are no rules."
Please bring in someone like Naval to explain how startups like our small, two person company in Utah with ambitions to be large and create jobs, raise money.