Crowdfunding Campaign to Change Crowdfunding Law

Legalize Crowdfunded Securities!
Paul Spinrad
San Francisco, California
United States
0 Team Members

Crowdfunding sites like IndieGoGo offer VIP Perks but not shares—
because offering profit participation is illegal. Securities law lets
you gamble your retirement on investments conveyed through the
all-controlling financial system, but you can’t invest $50 in someone
you actually know personally
, in order to help them start a small
business, write a book, make a film, build an iPhone app or develop a
new product that you believe has commercial potential.

The SEC can change this situation by introducing a regulatory exemption that caps individual investments at $100. I believe that doing this would change everything for crowdfunding, spark innovation, and help vitalize the economy from the bottom up.

The idea of an exemption based on very low cap on individual investment is not new; according to the SEC’s Anthony Barone, it has been discussed and brought to the SEC’s attention by academic economists. What has not yet been demonstrated is the extent of public interest in such an exemption.

This project offers a serious plan for essentially forcing the SEC to consider this possibility and respond to it publicly.

This issue is more complicated than can be explained on this short
project page, but you can read the prospectus for the history and background on this project.



  • $1000 is a great deal, and the SELC is the perfect organization for this; highly regarded, and involved with these issues. See the prospectus for details).
  • The SEC posts any Petitions for Rulemaking that it receives, along with all public comments. This area of the SEC website is surprisingly inactive.
  • Once the SELC petition is posted, we mobilize crowd action to
    submit comments. If the SEC receives a large number of comments in support of legalizing crowdfunding, they will need to hire someone to process them all. This is an example of the ever-newsworthy Old Institution, Blindsided, Is Forced To Confront New Phenomenon.

Note that we originally thought the petition would be written under the auspices of the Katovich Law Group , but subsequently decided to have the work done by the SELC (which is affiliated with Katovich). This makes your contributions tax-deductible!

raised by 53 people in 2 months
120% funded
No time left
$1,099 USD goal
Flexible Funding This campaign has ended and will receive all funds raised.
Campaign Closed
This campaign ended on June 25, 2010
Select a Perk
  • $2USD

    You will be listed as a contributor on the Public Petition for Rulemaking submitted to the SEC (its first footnote will read, "This petition was funded in part by contributions from the following individuals:"). If this document does indeed help to change the course of finance and culture, as we hope it will, then this means your name will be forever enshrined in a primary source text of historic significance. What A Bargain!

    11 claimed
  • $5USD

    Above + a tasteful handwritten Thank You card from Paul (the Project Creator), so it isn't all so virtual.

    16 claimed

    Trophy Bearer

    Above + an elegant and meaningful Brass Balls Kit from Paul's storefront on Maker's Market

    10 out of 10 claimed
  • $50USD
    Close Personal Friend

    Above + if you're ever in San Francisco, come over to Paul's place for a delicious home-cooked meal with his delightful family, or else let him take you out one night to some of his favorite local haunts.

    3 claimed

    Money Maverick

    Revolutionary perks above + one hour's consulting work from Paul (writing, editing, LISP coding, repairs) or one hour's consulting work from IndieGoGo founder Danae Ringelmann, CFA (crowdfunding, securities analysis).

    4 out of 4 claimed
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