article thumbnail

Will Crowdfunding Replace Angel And VC Investors?

Startup Professionals Musings

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors, is still not legal in the U.S., despite having been passed into law in early 2012 via the JOBS Act , and still has no scheduled date for availability, waiting for the rules to be finalized by the SEC. Startup equity model. In the U.S.,

article thumbnail

Don’t Be Fooled By All The Hype For Crowd Funding

Startup Professionals Musings

The newest equity model was passed into law in early 2012 via the JOBS Act , and still has no scheduled date for availability in the USA, waiting for the rules to be defined by the SEC: Startup equity crowd funding. There is no concept of ROI other than product. Rewards-based crowd funding. Debt-based crowd funding.

Funding 99
article thumbnail

10 Reasons for a Startup to Skip Outside Investors

Startup Professionals Musings

Based on the latest Startup Environment Index from the Kauffman Foundation and LegalZoom, personal money, or bootstrapping, continued to be the primary startup funding in 2012. Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge.

Startup 105