Hi Recently, CNN talked about a site, sellaband.com that raises funds from online users ($10 each) and allows users to be shareholders of a band. http://en.wikipedia.org/wiki/Sellaband Are there many legal/ statutory requirements to raise funds this way? Isn't selling shares to public similar to listing a public company on stock exchange and therefore be subject to same stringent rules. Anyone has any experience raising funds for online business this way? Thanks
Far as regulatory factors, note they are based in Germany. One band from the states has produced/released a CD so either it flew under the radar or it's ok. But from what I remember of corporate law, it isn't legal mainly cause of the high percentage of ripoffs and scam artists. It could be legal with just miles of redtape. Would suck, raise 50,000 USD and it costs $30k to comply with all the legalities