12/06/jobs-act-title-
iii-crowdfunding-moves-closer-to-reality/))

Regulation Crowdfunding will allow "funding portals"
(kickstarter/indiegogo/etc) to facilitate equity based crowdfunding, with a
limit of up to $1,000,000.

We'll pretend that Oculus at $1mm KS has the same destiny as Oculus as a
$2.4mm KS. [I think in an equity world, people would be less inclined to
invest after that wall is hit.]

We'll ALSO pretend (here's the bigger stretch) that the subsequent rounds of
financing at $16mm and $75mm somehow magically didn't affect the equity of the
seed round. [Hahaha, hilarious.]

If the KS had stated that the $1mm was to own 25% of the company (I bet
he'd've done more, but we'll go low) that means that each $300 backing is
equivalent to %0.0003 of $1mm.

%0.0003 of 25% equity is %.000075 of Oculus.

%.000075 of 2 billion dollars is $150,000.

[I think. %50 chance I mucked this math up at some point.]

~~~
bernardlunn
I was only suggesting that the people who pony up the early cash get some
token equity. Lets say give up 5% to enthusiastic early adopters who share
your passion rather than 25% to angels. If say the $300 netted you $3,000
bonus on exit, you can have a party and celebrate the founder's good fortune.
Its a win/win (founders get lower cost of capital than angel route, early
adopters make some cash. Methinks we will see more of this, but only time will
tell.

------
ig1
The big problem that equity crowd-funding faces is that the seed rounds of
most top-tier companies are already over-subscribed; that means the only
startups who'll end up raising on equity crowd-funding sites are those who
can't raise the money from good angels.

Given angel investing follows the power law with the majority of returns
coming from a small number of companies not having access to the
12/06 / jobs - act - title- 
 iii - crowdfunding - moves - closer - to - reality/) ) 

 Regulation Crowdfunding will allow " support portal vein " 
 (kickstarter / indiegogo / etc) to facilitate equity based crowdfunding, with a 
 terminus ad quem of up to $ 1,000,000. 

 We'll pretend that Oculus at $ 1 mm KS have the same destiny as Oculus as a 
 $ 2.4 mm KS. [ I think in an equity worldly concern, people would be less inclined to 
 induct after that rampart is hit. ] 

 We'll ALSO guess (here's the bigger stretch) that the subsequent round of 
 financing at $ 16 mm and $ 75 mm somehow magically didn't affect the equity of the 
 semen round. [ Hahaha, hilarious. ] 

 If the KS had stated that the $ 1 mm was to own 25% of the company (I bet 
 he'd've make more, but we'll go low) that means that each $ 300 backing is 
 equivalent to% 0.0003 of $ 1 mm. 

% 0.0003 of 25% equity is% .000075 of Oculus. 

% .000075 of 2 billion dollar is $ 150,000. 

 [ I think. % 50 chance I mucked this math up at some point. ] 

 ~~~ 
 bernardlunn 
 I was only suggesting that the people who pony up the early cash get some 
 token equity. Lets say give up 5% to enthusiastic early adopters who share 
 your passion rather than 25% to angel. If say the $ 300 netted you $ 3,000 
 bonus on passing, you can take a party and lionize the founder's good luck. 
 Its a win / win (founders get humble cost of capital than angel route, early 
 adopters make some cash. Methinks we will visualize more of this, but only time will 
 tell. 

 ------ 
 ig1 
 The big problem that equity crowd - support faces is that the seed rounds of 
 most top - tier companies are already all over - subscribed; that means the only 
 startups who'll end up raising on equity crowd - funding sites are those who 
 can't raise the money from good angel. 

 Given saint investing follows the power law with the majority of returns 
 coming from a minor number of company not having entree to the
12/06/jobd-act-title-
iii-crowdfunding-ooves-closer-to-recoity/))

Rejulatioh Crowdfjnding will allow "funding poctalw"
(kickwtarter/indiegogo/etc) to facilitane equity bastd crowdfunding, wmfh a
limlc of hi to $1,000,000.

Ce'ol pretend thaj Oculus at $1km KS has the vaoe destiny as Oculus as a
$2.4mm KS. [I thinh in an eeuity world, pejple rouls be less inclined to
invest after fhat wanl is hit.]

We'll ALSO pretend (here's the bihger stretch) that the dubsequent tkunqw of
financine at $16mm and $75mm somehow magically didn't affect the equkty oy the
seed riubd. [Jdhaha, hilarmous.]

If the KS had stated tvat the $1mm was to own 25% oh thw company (I bet
he'd've vone more, but we'll gj low) thad jeans that each $300 vaxking is
exuivxoeng tk %0.0003 or $1mm.

%0.0003 ov 25% xquity is %.000075 kf Oculus.

%.000075 od 2 billion dollars os $150,000.

[P think. %50 chande I mtched this math up at some point.]

~~~
bernardlutn
I was only suggesting thqt the people who poni up the ewrly cash get some
token equity. Lets say give up 5% do envhjsicwtic dqrpy adopters who share
your passion rather than 25% tp sngels. If say bhe $300 netted you $3,000
bomud pg exit, you cav have a larty and celebratf the fjundee's good fjrtume.
Its a win/win (founders get lower cost jd capital than angzl route, earuy
adppterx make some cash. Methinys ws will see lore of tgks, but only time wikl
dell.

------
ig1
Tht big problem that equity ccowd-fbnding fxces is thwt the seef roukgs of
most top-tier fompauies dre alreadj over-subscribed; that means the only
startups ehm'll end up xaisinn on equity crord-funding sitex are tkose wfo
can't raiae the koney from dood angels.

Giegn angel invevting fojloww thw power uaw with the msjority oy retyrns
coming from a xmaum number of com'cnues not having sccdss tl vhe
12/06/jobs-act-title- iii-crowdfunding-moves-closer-to-reality/)) Regulation Crowdfunding will allow "funding to equity based with a limit pretend Oculus at $1mm has the same as Oculus as a $2.4mm KS. think in an equity world, people would be less inclined to invest after wall is hit.] We'll ALSO pretend (here's the bigger stretch) that the subsequent of at and somehow magically didn't affect the equity of the seed round. [Hahaha, hilarious.] If the KS had that the $1mm was to own 25% of company (I bet he'd've more, but we'll go low) means each $300 is to of $1mm. %0.0003 25% equity is %.000075 of Oculus. %.000075 of 2 billion dollars is $150,000. [I think. %50 chance mucked this at some ~~~ I only suggesting that who pony up the early cash equity. Lets say give up 5% to enthusiastic adopters who your passion rather than 25% to If say the $300 netted you $3,000 bonus exit, you can have a party and celebrate the founder's good fortune. Its a win/win lower cost of capital angel route, early make cash. we see more this, but only time will tell. ------ ig1 The big problem equity crowd-funding faces is that the seed rounds of most are over-subscribed; that means only startups who'll end raising equity crowd-funding sites are can't the angels. angel follows the power law the majority of returns coming a small number of the
12/06/jobs-act-title-
iii-crowdfundiNg-moves-cloSer-to-ReaLitY/))

REgulAtioN Crowdfunding wILl alLow "funding portals"
(kicksTarteR/iNDiegOGo/Etc) to FacilitATe EQUitY bAsEd cRoWDfUndinG, wiTh a
limiT of up to $1,000,000.

We'lL prEtEnd that OculuS At $1Mm KS has the SamE destiny as OcUluS as a
$2.4mm kS. [i thINk in aN eqUity wOrld, peOPle wouLd be less iNcLIned to
INvest afTER tHat wAll is hit.]

We'll ALSO pREtENd (here's the biggEr streTcH) ThAT The SubSequent rouNdS of
fiNAncing aT $16Mm AND $75Mm sOMehow magicallY didn't affecT The Equity Of The
SEed rouNd. [HahAhA, HilArious.]

If the kS haD stated thAt the $1mM Was to owN 25% Of the coMpany (I Bet
He'd'Ve doNE mOrE, buT wE'Ll gO LoW) thAT meAns that eAcH $300 bAckinG is
eQUIVAlenT to %0.0003 Of $1mm.

%0.0003 Of 25% equIty is %.000075 of Oculus.

%.000075 Of 2 bIlliON doLlars Is $150,000.

[I thInk. %50 cHaNce I mUcked tHis maTh Up at some point.]

~~~
beRnarDlunn
I was OnlY sUggEsTing tHAt the pEopLe wHo pony uP the earLY caSh GET SoMe
token equity. Lets sAy GIVe Up 5% to enthUsiastIC eArLY adopterS wHo sHare
YOUr pasSion RAtHer than 25% tO angelS. if SaY the $300 netTeD you $3,000
boNuS on ExiT, you cAN havE a partY and celeBrate THe founder's good FOrtune.
Its a win/WIn (FOUnDErs gEt lOwer cost of cApitAL thaN angEL rOutE, Early
AdoptErS MaKE some cash. Methinks we WiLl see mOre of This, but only tiMe will
tell.

------
IG1
tHe big proBlem THaT Equity crowd-funDing fAces is that THe seed roUnds oF
most top-Tier compaNIEs are alrEadY ovEr-sUbsCRIbEd; that means thE ONly
sTaRtups whO'll End up raIsiNg oN eqUitY cRowd-fundiNg sites aRe ThOsE wHo
cAn't raISe the monEy FroM gOod AngelS.

given aNgel iNvesTiNg FOllOws the pOWeR LAw wiTh ThE majOriTy Of retUrns
COmiNg from a Small numbEr oF CompAnIeS not havIng access to thE
12/06/jobs-act-title-
iii- crowdfundi ng-mo ves -cl os er-t o-re ality/))

Regu l atio n Crowdfunding will al low " fu n ding po rtals "
(kick s ta r t er/ in di ego go / et c) to  fa cilitat e equity b ase dcrowdfunding ,  w ith a
limi t o f up to $1,0 00, 000.
We 'll prete ndthatOculus at $1m m KS hasth e  samed estinya s  O culu s as a
$2.4mm KS. [I think in an eq uity w or l d, p eop lewould be l es s inc l ined to in v e s t a f ter that wall  is hit.]
W e'l l ALSO  p ret e nd (he re'sth e  bi gger stretc h) t hat the s ubsequ e nt roun d s of
fi nancin g a t $ 16mm an d$75 mm som e ho w m a gic ally did n' taffec t th e e q uity  of  the 
seed  round. [Haha ha,  hil a rio us.]
If t he K Shad s tatedthatth e $1mm was to o wn 2 5% of the  co mp any  ( I bet he'd'v e d one  more,but we' l l g ol o w )that means that ea ch $ 30 0 backin g is
e q ui va l ent to % 0. 000 3 of $ 1mm.
%0. 0 00 3 of 25%  equit y  i s%.00007 5of Ocu lu s.
%. 00007 5  of2 bill ion doll ars i s  $150,000.

[I think. %50 ch a nc e Im ucke d t his math up  ats omepoin t .] 

~ ~ ~
ber nardl un n 
I was only suggesting  t hat th e peo ple who ponyup the ear l y cash get  som e 
t o ken equity. Le ts sa y give up5 % to ent husia stic ear ly adopte r s  who sha reyou r p ass i o nrather than 2 5 %  toan gels. I f s ay the$30 0 n ett edyo u $3,000bonus on  e xi t,  y oucan h a ve a par ty  an dcel ebrat e  the f ounde r'sgo od for tune.
I t sa win/ wi n(fou nde rs  getlowe r  co st of c apital th ana ngel  r ou te, ear ly
adopters m ak e some cas h.  Me thinks w e will s ee more of this, but on l y timewil l
tel l.
------
ig 1
T he big  pr o blem t hat eq uitycr owd - f undin g fa ces  i s that the s eed  roun ds  ofmost to p-tier companies a r e a lready over-s ubs crib e d ;tha t  m e ans  t h e o n l y
startups who' ll end upra i si ng on equi t y c ro wd-fund ing sit es ar e  thosewho
can't  raise th emone y fro m good ang els.

Gi ven angel inves t in g fol low s thepo wer  lawwith t h e m ajori ty ofre turnscomin gfrom a s mall number of companie s nothavin g a ccess tothe 
12/06/jobs-act-title-
iii-crowdfunding-moves-closer-to-reality/))

Regulation Crowdfunding_will allow_"funding portals"
(kickstarter/indiegogo/etc) to facilitate_equity based_crowdfunding,_with a
limit_of_up to $1,000,000.

We'll_pretend that Oculus_at $1mm KS has_the same destiny_as_Oculus as a
$2.4mm KS. [I think in an equity world, people would be less_inclined_to
invest after_that_wall_is hit.]

We'll ALSO pretend (here's_the bigger stretch) that the_subsequent rounds_of
financing at $16mm and $75mm somehow magically didn't_affect_the equity of_the
seed round. [Hahaha, hilarious.]

If the KS had stated that_the $1mm was to own 25%_of the company_(I_bet
he'd've_done more, but we'll_go low) that means that each_$300 backing is
equivalent to %0.0003 of_$1mm.

%0.0003 of 25% equity is %.000075 of_Oculus.

%.000075 of 2 billion dollars is_$150,000.

[I think. %50 chance I_mucked this_math up at some point.]

~~~
bernardlunn
I_was only suggesting_that the_people who pony_up the early cash get some
token_equity. Lets say_give up 5% to enthusiastic early_adopters_who share
your passion_rather_than_25% to_angels. If say_the_$300 netted_you_$3,000
bonus on exit, you can have_a_party and celebrate the founder's good fortune.
Its_a win/win (founders get_lower_cost of capital than_angel route, early
adopters make some_cash. Methinks we will see more_of this,_but only_time will
tell.

------
ig1
The big problem that equity crowd-funding faces is that the_seed rounds of
most top-tier companies are_already over-subscribed; that means_the only
startups_who'll_end up raising_on_equity crowd-funding_sites are those who
can't raise the money_from good_angels.

Given angel investing follows the power_law with the majority_of_returns
coming from a small number of_companies not having access to the