Ok, who isn’t familiar with the new SEC rules about startup fundraising? None of you? Not surprised!
Well, it’s all very murky…still! But the bottom line is that startups can now announce on Facebook, Twitter and other avenues that they are raising money. Crowdfunding? Not yet. Are there rules we must follow to solicit funds? Yes, absolutely. This new world is not for the fainthearted!
For now, investors must be accredited, and the responsibility is upon anyone raising money to verify it. An Accredited Investor is one who has a net worth of $1,000,000, or has $200,000 income a year (or $300,000 for couples), not including primary residence.
So here’s a good article in TechCrunch. Read up.
As a side note, our SandBox (Let’s Play) product will greatly benefit from these new rule changes. We’ll be able to hire designers and technical staff to get this monstrosity (it’s a complicated SmartTV and Smartphone app) into beta (development phase), once we’re funded.
We’ll keep you posted on how it’s going.