Small Businesses Take Fundraising Public

[JBird]

http://online.wsj.com/article/SB10001424052702304795804579097500555715202.html?mod=WSJ_hps_LEFTTopStories

 

Would love to hear some thoughts on this.

[ERICOPOLY]

A few days ago I had an old high-school acquaintance send out a message to all of his Facebook contacts (including me).  I haven't seen him for 22 years.

 

He's trying to raise money for his PhoRent business:  https://wefunder.com/phorentcom

 

So I guess he was blocked from this kind of direct solicitation before.  Have to say, I don't like being approached for money.  I wish the SEC didn't do that.

[Packer16]

Is the gonna turn these firms into promotional machines likes some of the junior resource companies?

 

 

Packer

[Kraven]

A few days ago I had an old high-school acquaintance send out a message to all of his Facebook contacts (including me).  I haven't seen him for 22 years.

 

He's trying to raise money for his PhoRent business:  https://wefunder.com/phorentcom

 

So I guess he was blocked from this kind of direct solicitation before.  Have to say, I don't like being approached for money.  I wish the SEC didn't do that.

 

I was also recently approached by someone I used to work with many years ago.  I also did not like it.  I guess I don't understand it at all really.  I mean it's just asking people for money.  It's not like you get a piece of the business or even that it's a loan, it's just a "donation".  What irritates me is that it would be one thing if the guy was down on his luck or something like that, but he made decent money and comes from a well off family.  I don't get it.

[Guest wellmont]

they are only supposed to be soliciting accredited investors. however, that stipulation will be dropped early next year. a disaster in the making. I think kickstarter is scam. but that's just me. :)

[Palantir]

I think this is awesome, the more capital formation, the better.

[fareastwarriors]

A few days ago I had an old high-school acquaintance send out a message to all of his Facebook contacts (including me).  I haven't seen him for 22 years.

 

He's trying to raise money for his PhoRent business:  https://wefunder.com/phorentcom

 

So I guess he was blocked from this kind of direct solicitation before.  Have to say, I don't like being approached for money.  I wish the SEC didn't do that.

 

 

I actually like the concept... it's reminds of peer-to-peer car sharing (rental) .

 

The site needs a bit of help but interesting concept. I hope they (or someone else) make it.

[Parsad]

I think it's great, but the cap should be lower.  I don't think you should be able to raise more than $100,000.  The funds and success should be tracked somehow as well. 

 

How many great businesses were started on a shoe-string budget and funds from family and friends?  I don't think this is any different, except that it isn't limited to family and friends.  But it becomes dangerous when you solicit large amounts of money, and there is no way of holding people responsible. 

 

So, if there was some way to track people, funds raised, how they are utilized, and whether the business succeeds or fails, would be important.  You need to keep the repeat offenders, scams, frauds and bad bets out of the capital markets somehow.  Cheers! 

[nikhil25]

Just checking in to see if anyone has any experience/thoughts on investing with startups on fundraising platforms. Apparently, there are a bunch of them now like WeFunder, NextSeed, StartEngine & SeedInvest