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I think the barrier is more human than anything, although it sounds like there are legal hurdles as well. Crowdsourced financing would create 2 problems:
1. The company would likely have a huge number of relationships with investors to update and manage. That sounds hard.
2. It's pretty hard to establish 'money trust' (high level trust that must endure difficulties over a number of years) through a web page, twitter message, etc.
That's my perspective, as the CEO of a startup company (AdHack) that just launched our beta and is now preparing to go to the market to raise funding. I've played with the idea of crowdsourcing and it just doesn't feel right.
If Jason is allow to do what he proposed to do, all the institutions, VC, IB would be out of business. Also, there would be no need for the GOV grant system too because it takes the GOV FOREVER to hand out grants to business in need. Plus, business financing is not mean for everyone or all the banks would be out of business too.
I agreed that SEC and FINRA should make such changes and allow non-accredited investors to decide for ourselves on "micro investments" without all the GOV scrutiny and red tapes.
Of course, there are ways to go around the SEC because Jason's post on twitter only violated two areas.
1) advertise in public
2) Without qualifying investors
Thus, Jason can very well host an online seminar without accepting investment money and to build "existing relationship with potential investors, FIRST. By doing so. Jason is relieved of its first violation of advertising in public.
Also, its not difficult to find 5000 accredited investors online, as we have over 25 million accredited investors in the US alone. So 5000 isn't too difficult.
Also, if Jason change his post a bit by stating below:
Seeking individual/ private lenders! $100/ Lender rather than investor.
Then, Jason should be on his way to achieve his objective.
We believed in Investment Money From Majority For Majority (IMFM2)
Good luck Jason