“This is cool new stuff. There will ultimately be a long-term role for both types of crowdfunding. Whether you are an entrepreneur or an investor, it is important to understand the tradeoffs and decide whether you can live with them.”
—Christopher Mirabile, Chair-Elect, ACA (Inc. Magazine, 2015)
To get you excited for the Capital Network’s JOBS Act Roundtable on Tuesday, April 28, we hosted a Reddit AMA with Christopher Mirabile, the chairman-elect of the Angel Capital Association and the co-founder of portfolio management tool Seraf. Mirabile is also the co-managing director of Launchpad Venture Group, a venture investment group focused on seed and early-stage investments in technology-oriented companies.
Our goal was to offer two complementary but different events, designed to open the conversation to an even broader audience on this topic.
Among the many questions asked, one included whether the JOBS act was good and bad, to which Mirabile responded:
The JOBS act has really not changed enough yet to affect the average investor in either a good or bad way, but it may over time. If the SEC allows for broad-based equity crowdfunding in risky startups without meaningful disclosure or limits, that might, ironically end up being bad for investors in the long run, depending on how you look at it. On the one hand, arguably everyone should have the right to invest in anything they want (freedom is good etc.), but on the other hand, the SEC was created to protect investors from those deliberately looking to take advantage of them. Historically, disclosure and public information has been the solution and the small number of exempt deals allowed to be done without disclosure was limited to investors believed to be capable of withstanding the loss. Read more…
Missed your chance to ask your questions? Don’t forget to RSVP to the roundtable on Tuesday to meet Mirabile and Tom Powers of Nutter McClennen & Fish.