A unique way to raise start up capital

**ceo77** · 12-06-2007 12:28 PM

I use to always say if you can convince 1 million people to give you $1 you would be a millionaire, and thats the concept of generating start up funds.

Angel investors usually invest large sums of money into businesses and other investors that do put money usually want to have some say of what goes on in your business and of course there is the pressure of having to pay them back.

But what are the chances of someone wanting a return on a $5.00 investment?

In a nutshell you put up everything about your business online including company info, business plan and all that you have done thus far. you put your start up goal (my goal is $85,000 for what I'm trying to do), and what you would need the funds for. Lastly you put how much you've raised so far and your companies progress on your site/blog whatever. Lastly you have a donations button where potential investors can donate. A limit of say $200.00 would be the most anyone can invest (if they want to make more than one investment so be it)

To insure this isn't a scam, I'm listing all of the companies info including phone numbers etc.

For people like me that are having a hard time getting loans or finding any source of start up capital I think its worth a try.

Its hard having a good idea with no funds to make it a reality.

When I'm done with my site I'll post it. You'll be able to see how much I've raised.

**sleighter** · 12-06-2007 12:58 PM

Go for it.These days anything can work.Good luck

**Cole Taylor** · 12-06-2007 03:37 PM

LOL. The SEC and State securities regulators just love general solicitation of unregistered securities.

Sorry, but what you just said is a horrible idea.

**rogercbryan** · 12-06-2007 03:50 PM

Didn't I see this post someplace else?

**BusinessAdviser** · 12-06-2007 06:23 PM

QUOTE=Cole Taylor;152100]LOL. The SEC and State securities regulators just love general solicitation of unregistered securities.

Sorry, but what you just said is a horrible idea.[/QUOTE]

Yes and no.

Yes, this is likely a horrible idea, if you plan on spending your time, money, and resources hoping to receive a large sum of money.

And no, this is NOT "general solicitation of unregistered securities." You ARE correct that the SEC loves general solicitations of unregistered securities, but I think you missed the word "security" when you made your comment. There is no security involved here, just a request for donations. If that amounted to a "general solicitation of unregistered securities," he still wouldn't have to worry because the SEC would have their hands full arresting every homeless man with a cup of change on the street.

If you don't know what you're talking about, don't advise others here on it.

**Knowledge82** · 12-06-2007 06:23 PM

Originally Posted by ceo77

I use to always say if you can convince 1 million people to give you $1 you would be a millionaire

I say the same thing
im workin on that myself right now

**Cole Taylor** · 12-06-2007 06:41 PM

Originally Posted by jmenq2

QUOTE=Cole Taylor;152100]LOL. The SEC and State securities regulators just love general solicitation of unregistered securities.

Sorry, but what you just said is a horrible idea.

Yes and no.

Yes, this is likely a horrible idea, if you plan on spending your time, money, and resources hoping to receive a large sum of money.

And no, this is NOT "general solicitation of unregistered securities." You ARE correct that the SEC loves general solicitations of unregistered securities, but I think you missed the word "security" when you made your comment. There is no security involved here, just a request for donations. If that amounted to a "general solicitation of unregistered securities," he still wouldn't have to worry because the SEC would have their hands full arresting every homeless man with a cup of change on the street.

If you don't know what you're talking about, don't advise others here on it.[/QUOTE]

You're a funny guy with an obvious complex. Lets start by quoting what the OP said:

"But what are the chances of someone wanting a return on a $5.00 investment?"

"much you've raised so far"

"Lastly you have a donations button where potential investors can donate."

"A limit of say $200.00 would be the most anyone can invest (if they want to make more than one investment so be it)"

"When I'm done with my site I'll post it. You'll be able to see how much I've raised."

I dont see what is so difficult to comprehend. He is seeking investors for unregistered securities. Ask any securities attorney idiot.

**exstatic** · 12-07-2007 07:37 AM

Maybe he should change the term investment, to donation..

People expect to see a return on an investment..

**BusinessAdviser** · 12-07-2007 12:16 PM

The OP's references to any term including the word "invest" is a mistaken reference to a "donation."

An "investment" is "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value."

A "security" is "something given or deposited as surety for the fulfillment of a promise or an obligation, the payment of a debt, etc." or "an evidence of debt or of property, as a bond or a certificate of stock. "

In order to avoid any question, the OP should understand the difference between an investment and a donation. However, I don't think that the SEC is licking their chops looking for someone who is asking for donations, which is what this is.

Now, Cole, if the OP were offering something in return, or even the potential for something in return, for the donation, it would be considered an investment.

And as for your comments about any "complex" that I may have or about me being an "idiot," I have no reason to respond in defense. I am here and have been here only to offer my opinion and advice to help others. If you feel the need to attack me, go for it, but I don't have the time or care to begin name calling and other types of playground fighting.

OP, make sure that you are clear as to what you are offering. You're likely OK because it appears you are actually merely soliciting donations, but as Cole pointed out, soliciting actual investment over a medium such as this is a big no-no. Rephrase your posting, and understand that if you are actually offering any kind of return, potential return, stake in any property (including your idea, project, or company), you're really asking for problems.

**Cole Taylor** · 12-07-2007 07:13 PM

Originally Posted by jmenq2

The OP's references to any term including the word "invest" is a mistaken reference to a "donation."

An "investment" is "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value."

A "security" is "something given or deposited as surety for the fulfillment of a promise or an obligation, the payment of a debt, etc." or "an evidence of debt or of property, as a bond or a certificate of stock. "

In order to avoid any question, the OP should understand the difference between an investment and a donation. However, I don't think that the SEC is licking their chops looking for someone who is asking for donations, which is what this is.

Now, Cole, if the OP were offering something in return, or even the potential for something in return, for the donation, it would be considered an investment.

And as for your comments about any "complex" that I may have or about me being an "idiot," I have no reason to respond in defense. I am here and have been here only to offer my opinion and advice to help others. If you feel the need to attack me, go for it, but I don't have the time or care to begin name calling and other types of playground fighting.

OP, make sure that you are clear as to what you are offering. You're likely OK because it appears you are actually merely soliciting donations, but as Cole pointed out, soliciting actual investment over a medium such as this is a big no-no. Rephrase your posting, and understand that if you are actually offering any kind of return, potential return, stake in any property (including your idea, project, or company), you're really asking for problems.

Your MO seems to be to attack any advice I give and when I respond you back off saying you're not looking for a fight. If you're not looking for someone to respond, then I strongly suggest that you DO NOT post in every thread I respond to about me not knowing what I'm talking about.

If the OP is soliciting funding as an INVESTMENT, as he referred to it numerous times, then he is in fact selling a security. Regardless of how unlikely it is that the SEC or State securities regulators will find out, the fact remains that what he is looking to do is against the law.

**nelsen3000** · 12-07-2007 11:36 PM

maybe i missed it between the fighting but what are you selling???

**nelsen3000** · 12-07-2007 11:37 PM

or let me rephrase that what is your company offering?

**exstatic** · 12-08-2007 07:22 AM

Originally Posted by nelsen3000

or let me rephrase that what is your company offering?

Exactly, this sort of concept could work if you have a unique business, something a little different that people need to 'beleive' in.

I doubt many people will donate money if you plan on opening a corner store.

What sort of a business are you looking at starting?