Kickstarter Refuses Equity Crowdfunding
Posted: Mon May 05, 2014 11:25 pm
Kickstarter CEO Yancey Strickler says that equity crowdfunding will not be allowed on his platform.
The CEO instead expects Kickstarter to be used so that people can find support for their start-ups and possibly as a renewal of support in culture and the arts. As of today there are sites that specialize in equity crowdfunding, such as equitynet.com, startupvalley.com and crowdability.com.
Taking a similarly careful but more open approach, Indiegogo sees equity crowdfunding as an exciting possibility. However, as of today they are still waiting to see whether the finalized regulations will improperly protect business owners or be a hindrance to innovation before they adopt the practice.
Source: http://business.financialpost.com/2013/06/18/indiegogo-equity-crowdfunding/?__lsa=053a-2b5e
What do you guys think of equity crowdfunding?
The Securities and Exchange Commission is developing rules to legalize equity crowdfunding, which would allow regular people – nonaccredited investors – to fund companies in exchange for ownership shares.
Some regulatory questions remain, including what shareholder voting rights these rules will give to equity crowdfunding investors. Venture capitalists might also see less opportunity investing in a startup if 1,000 crowdfunders already own equity, according to John Taylor, head of research for the National Venture Capital Association.
The CEO instead expects Kickstarter to be used so that people can find support for their start-ups and possibly as a renewal of support in culture and the arts. As of today there are sites that specialize in equity crowdfunding, such as equitynet.com, startupvalley.com and crowdability.com.
Taking a similarly careful but more open approach, Indiegogo sees equity crowdfunding as an exciting possibility. However, as of today they are still waiting to see whether the finalized regulations will improperly protect business owners or be a hindrance to innovation before they adopt the practice.
Source: http://business.financialpost.com/2013/06/18/indiegogo-equity-crowdfunding/?__lsa=053a-2b5e
What do you guys think of equity crowdfunding?