It might cost you $39K to crowdfund $100K under the SEC’s new rules.
On October 23, 2013 the Securities and Exchange Commission (SEC) issued the proposed rules for Regulation Crowdfunding. The 585-pages included an explanation of the rules, the feedback it received, and a cost/benefit analysis.
If this happens, crowd funding (selling stock) to fund companies, will get expensive.
Adafruit publishes a wide range of writing and video content, including interviews and reporting on the maker market and the wider technology world. Our standards page is intended as a guide to best practices that Adafruit uses, as well as an outline of the ethical standards Adafruit aspires to. While Adafruit is not an independent journalistic institution, Adafruit strives to be a fair, informative, and positive voice within the community – check it out here: adafruit.com/editorialstandards
Adafruit is on Mastodon, join in! adafruit.com/mastodon
Stop breadboarding and soldering – start making immediately! Adafruit’s Circuit Playground is jam-packed with LEDs, sensors, buttons, alligator clip pads and more. Build projects with Circuit Playground in a few minutes with the drag-and-drop MakeCode programming site, learn computer science using the CS Discoveries class on code.org, jump into CircuitPython to learn Python and hardware together, TinyGO, or even use the Arduino IDE. Circuit Playground Express is the newest and best Circuit Playground board, with support for CircuitPython, MakeCode, and Arduino. It has a powerful processor, 10 NeoPixels, mini speaker, InfraRed receive and transmit, two buttons, a switch, 14 alligator clip pads, and lots of sensors: capacitive touch, IR proximity, temperature, light, motion and sound. A whole wide world of electronics and coding is waiting for you, and it fits in the palm of your hand.
Have an amazing project to share? The Electronics Show and Tell is every Wednesday at 7pm ET! To join, head over to YouTube and check out the show’s live chat – we’ll post the link there.
Join us every Wednesday night at 8pm ET for Ask an Engineer!
Join over 36,000+ makers on Adafruit’s Discord channels and be part of the community! http://adafru.it/discord
CircuitPython – The easiest way to program microcontrollers – CircuitPython.org
Maker Business — Making sure the CHIPS act isn’t just crumbs
Wearables — And now a word on laser ettiquette
Electronics — Capacitor ESR
Python for Microcontrollers — Python on Microcontrollers Newsletter: CircuitPython 8.1.0 and 8.2.0-beta0 out and so much more! #CircuitPython #Python #micropython @ThePSF @Raspberry_Pi
Adafruit IoT Monthly — AI Teddybear, Designing Accessible IoT Products, and more!
Microsoft MakeCode — MakeCode Thank You!
EYE on NPI — Maxim’s Himalaya uSLIC Step-Down Power Module #EyeOnNPI @maximintegrated @digikey
New Products – Adafruit Industries – Makers, hackers, artists, designers and engineers! — JP’s Product Pick of the Week — 4pm Eastern TODAY! 5/30/23 @adafruit #adafruit #newproductpick
Sorry, the comment form is closed at this time.
They’re talking about crowdfunding securities, i.e. raising money by selling debt or equity in your company. That’s a little different than selling hardware through KickStarter.
To be clear, I don’t think this would affect Kickstarter the way it works now – this is about equity crowdfunding, not pre-selling products. But I am curious about how that 39% compares to a priced round today…
As I understand it, this proposed regulation does -not- apply to most Kickstarter projects. With Kickstarter, you are making a contribution and hoping to get a product, performance, etc. You (the contributor) have no further interest in the project beyond that.
What the SEC is looking to regulate is crowdfunding where people are making contributions and expecting to actually own a share of the business in return. This is much closer to selling shares through a private placement or IPO; things the SEC already regulates.