Access to capital shouldn't require flushing $100k down the drain to get started. I have faith the technology will evolve to make companies click-to-start, and cheap to maintain, even allowing unregistered securities in those companies to be traded freely by the public.
To the companies who are trying to build walls and dig trenches around marketplaces which serve this end, personally I hope they all fail, and we end up with a distributed network which can host the necessary ledgers and market-making functions required.
If anyone here has the legal chops to help build this, please email me ;-) I've done my own 506(b) and I could build the distributed trading engine (did similar work on colored coins) and I would love to open source and democratize a platform for this.
I look at what SolarCity did with SolarBonds, which is a platform built by Common Assets who they acquired (unknown amount), if you've tried that platform, I think you have a taste of how SME companies could sell their equity.
I think the right platform can also significantly reduce the burden of an extremely long-tail cap table.
From a fund / roll-up perspective, the companies host their own trading platform, there's no reason the funds can't buy shares right on there, bundle, and resell the mix to their LPs. Someone like FounderFund benefits by being able to cheaply (as in transaction fees) acquire equity in many company who are running the A+ platform.
It does seem like a lot of overhead. I've been reading this with interest because I had been wondering if it might have positive implications for indie film financing (which usually goes through regulation D for mid-size projects; there's a real opportunity for seed/small project financing at the bottom end of the market), but don't see these changes having much impact in the short term.
Sort of like an open-source stock-exchange? Though I love the idea, I'm positive that you'll hit against all sorts of legal/political walls before it gets off the ground.
I've always believed that tech can be a great equalizer, and this would be a step in the right direction.
To the companies who are trying to build walls and dig trenches around marketplaces which serve this end, personally I hope they all fail, and we end up with a distributed network which can host the necessary ledgers and market-making functions required.
If anyone here has the legal chops to help build this, please email me ;-) I've done my own 506(b) and I could build the distributed trading engine (did similar work on colored coins) and I would love to open source and democratize a platform for this.
I look at what SolarCity did with SolarBonds, which is a platform built by Common Assets who they acquired (unknown amount), if you've tried that platform, I think you have a taste of how SME companies could sell their equity.
I think the right platform can also significantly reduce the burden of an extremely long-tail cap table.
From a fund / roll-up perspective, the companies host their own trading platform, there's no reason the funds can't buy shares right on there, bundle, and resell the mix to their LPs. Someone like FounderFund benefits by being able to cheaply (as in transaction fees) acquire equity in many company who are running the A+ platform.