Angel investors crowdfunding

William Carleton, Counselor @ Law

Survey Question 1What do angel investors think of the prospect of a new crowdfunding securities exemption? Good news, or bad?

It depends on the angel you ask.

I wanted to find a way to articulate the range of reactions I've been hearing from angels, in the months since a crowdfunding exemption first gained traction in Congress.

So, late Wednesday afternoon, I emailed a three-question SurveyMonkey poll to fourteen currently active angel investors. Eight have responded as of this writing (Thursday afternoon).

The poll, and the answers, are still very much in the realm of the anecdotal.Survey Question 2 But the results help me focus a bit better on how any crowdfunding exemption might better overlap with the Reg D Rule 506 paradigm to which serial entrepreneurs, angel investors and startup lawyers are accustomed. (I still think crowdfunding deals, to work, have to be set up in a way that bypasses lawyers.)

The results, and some interspersed commentary, below:

While angels are likely to have a generally positive view of crowdfunding, some feel strongly that crowdfunding should not extend to the sale of stock in startup companies. "In general, I think it’s a bad idea, " one of the survey respondents wrote. "These are highly risky assets."

One respondent told me that the the interests of entrepreneurs should come first. "I am in favor of crowdfunding because I think it will help entrepreneurism to flourish. I also realize that it may create competition for the angel investors however."

Thought on Equity Crowdfunding in the US?

by Crowdfunding-Sites

Hey All,
Curious on your thoughts on Crowdfunding; nonprofit, individual and Equity crowdfunding.
Have you ever run a crowdfunding project?
Was it successful?
How/Did you promote the project outside of the Crowdfunding Platform you utilized?
Doing some additional research for
to figure out if we should stick to reviewing crowdfunding platform and support services or branch in to promoting crowdfunding projects

Hybrid Angel Group SideCar Angels Exceeds $1 Million in Investments  — Crowdfund Insider
Boston based SideCar Angels, a group that leverages a hybrid crowdfunding / angel model, to fund early-stage companies, has exceeded $1 million of investments in start-ups over the past 12 months while doubling the number of their members.

CreateSpace Independent Publishing Platform Street Smart CEO: Lessons from Failed Startups + Crowdfunding @ InvestP2P.com
Book (CreateSpace Independent Publishing Platform)
Wiley The Crowdsource Funding Services Handbook: Raising the Money You Need To Finance Your Business Plan (Wiley Finance)
Book (Wiley)
BankToTheFuture.com CrowdFunding 2.0 - The 7 Dumbest Mistakes When Raising Finance For Your Company (CrowdFunding & CrowdInvesting Series)
eBooks (BankToTheFuture.com)
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