Wednesday, February 1, 2012

These Guys Built a Crowd Investing Platform Even Though It's Not ...

betabeat.com
Adrianne Jeffries

It is illegal to invest $100 in a startup in exchange for equity or options unless you?re an accredited investor.

Still, a website for crowd investing launched today: WeFunder.com. Even though the law that would make it legal is still being debated in the Senate, TechStars alumni and Startup Workaway co-founders Nicholas Tommarello and Nick Plante went ahead and built WeFunder and wrote a business plan anyway.

?We?ve built out the crowd-investing platform in advance of the law passing, and have put in a lot of thought into how to best protect small investors,? Mr. Tommarello wrote in an email.

A disclaimer on the site reads:

Wefunder is a crowd-investing platform for startups. Until the current law is changed (hopefully soon!), our invite-only beta is only open to accredited investors.

?We?re only going to choose one startup a week to feature; artificial scarcity will drive up quality,? Mr. Tommarello said. ?And we will only choose startups with at least one accredited investor ? the idea is that angels perform due diligence and professional mentorship, the crowd can throw in up to $1 million afterwards. That delays the date an A round is needed, enhancing founder control.?

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Source: http://thedailyattack.com/2012/01/30/these-guys-built-a-crowd-investing-platform-even-though-its-not-legal-yet/

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