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Subject: TMG planing an Equity crowdfunder rss

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Neil McIntyre
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I know nothing more about this than the vague email which has just landed in my inbox, but I wondered if this is something that other Games Companies have done in the past?

Fwiw, I don't really have the spare money to invest, so my consideration ends there. I'm just interested to hear if this is a new idea, or one that has been attempted before, and/or if previous Equity schemes have succeeded?

What's the upside for the individual investor?
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Keith B
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Got the same email and filled out the questionnaire.

As far as the upside, I would have thought it would be actual equity in the company with a dividend or profit sharing component. However, based on their questionnaire, their offerings of ROI included a hoodie, facebook page and next year's games (which I've already KS one of them), among other frivolous items. It seemed to me, at least by the questionnaire, their definition of an equity investment is different than mine.
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John Drake
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liencam wrote:
I know nothing more about this than the vague email which has just landed in my inbox, but I wondered if this is something that other Games Companies have done in the past?

Fwiw, I don't really have the spare money to invest, so my consideration ends there. I'm just interested to hear if this is a new idea, or one that has been attempted before, and/or if previous Equity schemes have succeeded?

What's the upside for the individual investor?


Is this even legal in the USA?

I thought to solicit investments the SEC requires the company to verify net-worth, with is in excess of $500k. You can't go door-to-door (or use e-mail) asking the average joe to invest in your company.
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Neil McIntyre
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BaBang wrote:
liencam wrote:
I know nothing more about this than the vague email which has just landed in my inbox, but I wondered if this is something that other Games Companies have done in the past?

Fwiw, I don't really have the spare money to invest, so my consideration ends there. I'm just interested to hear if this is a new idea, or one that has been attempted before, and/or if previous Equity schemes have succeeded?

What's the upside for the individual investor?


Is this even legal in the USA?

I thought to solicit investments the SEC requires the company to verify net-worth, with is in excess of $500k. You can't go door-to-door (or use e-mail) asking the average joe to invest in your company.


I'n not really aware of US Company law, but per the subject line, they are only planning this right now.
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Shaun Morris
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BaBang wrote:
liencam wrote:
I know nothing more about this than the vague email which has just landed in my inbox, but I wondered if this is something that other Games Companies have done in the past?

Fwiw, I don't really have the spare money to invest, so my consideration ends there. I'm just interested to hear if this is a new idea, or one that has been attempted before, and/or if previous Equity schemes have succeeded?

What's the upside for the individual investor?


Is this even legal in the USA?

I thought to solicit investments the SEC requires the company to verify net-worth, with is in excess of $500k. You can't go door-to-door (or use e-mail) asking the average joe to invest in your company.


Also not sure of the Corporate Law but it's possible that TMG is exempt due to not meeting a minimum revenue or not being a public company or some other exemption. US Corporate Law is so full of loopholes and exemptions that it's hard to know what is and is not legal without consulting an attorney who specializes in it.
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John Drake
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http://www.crowdcheck.com/sites/default/files/CrowdCheck%20M...

https://www.sec.gov/info/smallbus/secg/general-solicitation-...

Ok... now, this is way out of my scope of expertise. So if an actual lawyer/bank-official/SEC-regulator wants to chime in, please do.

But apparently, the SEC has amended the rules for seeking investments. Yet, you still need to be an accredited investor... which means you (and your spouse) make over 300k per year or you have 1 million dollars in assets (home doesn't count).

 
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Neil McIntyre
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BaBang wrote:
http://www.crowdcheck.com/sites/default/files/CrowdCheck%20M...

https://www.sec.gov/info/smallbus/secg/general-solicitation-...

Ok... now, this is way out of my scope of expertise. So if an actual lawyer/bank-official/SEC-regulator wants to chime in, please do.

But apparently, the SEC has amended the rules for seeking investments. Yet, you still need to be an accredited investor... which means you (and your spouse) make over 300k per year or you have 1 million dollars in assets (home doesn't count).



That's very interesting reading. Do you guys in the States not have some kind of Coop or equivent model which cicrumvents the (frankly exorbitant) requirements placed on accredited investors?
 
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Jon Bowker
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**Warning** Horrible speculation with absolutely no facts to back anything up incoming**

The first thought that entered my mind while reading this email..."We have been approached by Ass-mo-borg to purchase TMG but we don't know what we're worth. If we could find out how much someone else (even by crowdfunding to gamers) would pay, we'd know what our counter offer should be."

**End horrible, baseless speculation**

Enjoy the rest of your day.
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John Drake
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liencam wrote:
BaBang wrote:
http://www.crowdcheck.com/sites/default/files/CrowdCheck%20M...

https://www.sec.gov/info/smallbus/secg/general-solicitation-...

Ok... now, this is way out of my scope of expertise. So if an actual lawyer/bank-official/SEC-regulator wants to chime in, please do.

But apparently, the SEC has amended the rules for seeking investments. Yet, you still need to be an accredited investor... which means you (and your spouse) make over 300k per year or you have 1 million dollars in assets (home doesn't count).



That's very interesting reading. Do you guys in the States not have some kind of Coop or equivent model which cicrumvents the (frankly exorbitant) requirements placed on accredited investors?


What, you don't have a million dollars lying around?

But in seriousness... it's to prevent fraud and the likelihood that someone would lose so much, that their livelihood would be threatened. Is it possible to circumvent these regulations? I don't know. But without these regulations, I suspect we would have door-to-door salemen selling the next-big google.... for 5 easy payments of $19.99.
 
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Keith B
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BaBang wrote:
http://www.crowdcheck.com/sites/default/files/CrowdCheck%20M...

https://www.sec.gov/info/smallbus/secg/general-solicitation-...

Ok... now, this is way out of my scope of expertise. So if an actual lawyer/bank-official/SEC-regulator wants to chime in, please do.

But apparently, the SEC has amended the rules for seeking investments. Yet, you still need to be an accredited investor... which means you (and your spouse) make over 300k per year or you have 1 million dollars in assets (home doesn't count).



506(c) is for general solicitations, ie. those that would be mass marketed. An email to specific clientele would not fall under these rulings, I believe. But, I'm not a lawyer.
 
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Brian McCarty
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I'm guessing some folks may invest just to say they are a part owner (just like many folks buy shares in the Green Bay Packers -- which aren't shares in the traditional sense)

Not sure how I will fill out the survey, because how much I am willing to fork over depends on what benefits I get.

Brian
 
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Todd M
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Yeah, it seems like it's challenging for them because whatever legal advice they've received has informed them they can't really say much of substance. But that also makes it hard to respond to the survey.

I would not really be interested in another Martin Wallace-esque "pay $250 and receive all of next year's games" type investment. (Although that said, I do love TMG games, so /shrug. Maybe I would like that as an option for ROI.) When we start talking about equity investment, that implies to me putting money in to help TMG have more funding to do more and bigger things, and then receiving some sort of ownership ROI. But then again, that also implies an allocation of significant funds. I hope the survey gives them some useful info, but I could see people's responses changing significantly depending on the scope of the intended use of the funds and the ROI.
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Adam P
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They could use a Patreon as well, unless they really want to give dividends. I forgot, they're for-profit.
Another path could be micro-loans with returns, say 5%.

My big question is TMG cash starved or looking to expand big. My guess is they want to expand.
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Sky Zero
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As an agent of Finance for a fortune 50 company, my advice to everyone.....AVOID.
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Mike
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skyzero wrote:
As an agent of Finance for a fortune 50 company, my advice to everyone.....AVOID.


I would need to know "why" you are saying to better understand.
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Richard Bingle
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I use different email addresses for different purposes. While I understand their use of the email address I used for one of their kickstarters (hence creating a "relationship" with them), I'm a bit unhappy with their use of my BGG email address.
 
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Jon Geruntho
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With the email that came out from Indiegogo this morning, TMG's initial questionnaire makes a lot more sense. There must have been a recent change in the law.

As an aside, TMG publishes/imports fantastic games and if I had any reasonable amount of money, I feel they would be a sound addition to my portfolio. I am not a financial expert though and base that solely off of the quality of their product.
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Deb Cutler
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jjg101 wrote:
With the email that came out from Indiegogo this morning,


Please explain. I don't use Indiegogo.
 
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Todd M
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Maybe related to this:

http://fortune.com/2016/11/15/indiegogo-equity-crowdfunding-...

Quote:
Crowdfunding platform Indiegogo announced Tuesday it has made the leap into the evolving world of equity crowdfunding.
...
Equity crowdfunding is a nascent sector of fundraising that has only been accessible to the general public since May, when Title III of the Jumpstart our Business Startups Act (JOBS) took effect. In a nutshell, the law lets small-time investors purchase a small equity stake in startups, which can raise up to $1 million a year through such events. Previously, only investors who had either $1 million or more in assets or an annual income of at least $200,000 could participate.
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Deb Cutler
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Thank you.
 
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Brian Minsker
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BaBang wrote:
What, you don't have a million dollars lying around?.


Sure, I do. It's just in...uh...cardboard.
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Mark C
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I'm not familiar with this type of finance, so take it FWLIW, but....

There are accounting and fraud shenanigans even in publicly traded companies. Private companies involve professional investors who know what they're doing. So I'm not ready to go into what may be the wild west of a new type of finance. A game company in particular doesn't get me interested because of the low barriers to entry. I.e. a video game requires a long development cycle as well as equipment, vs a boardgame publisher comes in late in the cycle (most do anyway) after someone's worked on a design for some time, and they are sold on it being commercially viable. So they finish the design and source the components/art, etc.. With Kickstarter, you can even avoid many of those capital costs. Also, I'm not sure where the upside is. How many actually grow enough to sell at a profit?
 
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Rob Fossey
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Title III of the JOBS Act went into effect last May, opening more equity crowdfunding opportunities to non-accredited investors and loosening restrictions on startups looking to raise funds on FINRA-regulated equity crowdfunding platforms like MicroVentures. Thanks to Title III, ordinary investors aged 18 and older can now invest in startups. Although there are limits to the amount you can invest, you no longer have to be wealthy – or an “accredited investor” – to invest in private companies.

Federal law requires that you understand the risks of investing in early-stage companies before you invest on platforms like MicroVentures. You should also familiarize yourself with the investment process and regulations, including investment limits, cancellation policies, and sale restrictions. This FAQ provides basic information on these and other important topics, but you may need to refer to other resources for a complete understanding of Title III equity crowdfunding.

Investing in startups involves considerable risk, including the possible loss of all or a significant portion of your investment. You should review all disclosed risk factors before making an investment decision. The following are some of the primary risks associated with investing in a startup under Title III...

The above is from the MicroVentures FAQ. MicroVentures is doing at least a portion of the crowdfunding for TMG
 
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Brian McCarty
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I think it depends a lot on amount you need to invest.
If it is $10, I'd buy a 'share" and if money gets lost no big deal.
If it is $10,000, I'm probbaly going to pass...

Brian
 
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Todd M
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So it's live.

Own a Piece of TMG
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