Dan Romero pfp
Dan Romero
@dwr.eth
It's pretty much illegal to allow retail to to invest meaningful amounts in private companies. I was in charge of this fundraising round (Series D, the one that Kevin participated in). We looked into a bunch of options but there are were too many complications.
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Bitfloorsghost pfp
Bitfloorsghost
@bitfloorsghost.eth
Special purpose vehicles? Accredited investors?
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Dan Romero pfp
Dan Romero
@dwr.eth
SPVs are pretty extractive in most cases, especially at later stages. Accredited investors is a thing, but Rule 12g has a bunch of reporting requirements if you have too many shareholders. So companies that aren't public are disincentivized to have a wider shareholder base.
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Bitfloorsghost pfp
Bitfloorsghost
@bitfloorsghost.eth
Yeah that’s kind of what I mean though If CB really wanted to let in these kinds of people they could have, but didn’t feel like it was worth it to them
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Dan Romero pfp
Dan Romero
@dwr.eth
So you get to invest $250 in a company at an $8B private valuation. Best case (<10% of outcomes) it's a 10x. Most cases is it's 1.5-2x. Years of illiquidity. No investor updates. Money seems trapped / gone.
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Bitfloorsghost pfp
Bitfloorsghost
@bitfloorsghost.eth
A risk many would have been willing to take but instead companies decide for us
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Syed Shah🏴‍☠️🌊 pfp
Syed Shah🏴‍☠️🌊
@syed
It would be performative to try to boost sentiment and Coinbase would get roasted for it. You and I would be part of the roasting. Why would Coinbase do all of this just to let people invest pennies? Obviously they’re just trying to manipulate their stock price we’d say. And the evil version of the SEC would agree.
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Bitfloorsghost pfp
Bitfloorsghost
@bitfloorsghost.eth
I’d gladly have invested “Pennies” in 2013 or whenever Coinbase first came out and I became a user
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Dan Romero pfp
Dan Romero
@dwr.eth
Coinbase did do a crowdfund in the seed round. But I again, I think you're more interested in being "right" here.
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Bitfloorsghost pfp
Bitfloorsghost
@bitfloorsghost.eth
Well I am right that it isn’t illegal, it doesn’t need to become a thing lmao
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Dan Romero pfp
Dan Romero
@dwr.eth
I mean, it is. But you're going to continue to think you're right. https://farcaster.xyz/dwr.eth/0x381929f6
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Bitfloorsghost pfp
Bitfloorsghost
@bitfloorsghost.eth
Why are we saying 10,000 retail investors? It could be any much smaller number of accredited investors. You seem like you want to be right
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Dan Romero pfp
Dan Romero
@dwr.eth
The company did raise via crowdfund early open to accredited investors only. If you raise from a small number investors, which ones do you pick? What happens to the ones that get left out? You act like I didn't spend hours on phone calls with lawyers and accountants to try and do this. Reg 12g limits 2,000 accredited or 500 retail. It's an actual law.
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Syed Shah🏴‍☠️🌊 pfp
Syed Shah🏴‍☠️🌊
@syed
Here comes the “I’m disengaging” 🤭
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