Ask HN: is asking HN readers for funding a good idea? | Hacker News Reader

Ask HN: is asking HN readers for funding a good idea?

1 pointLucadg3 comments

Getting funded by investors is good, but not always possible. Why not "apply" to the HN community? Suppose you have a good idea and did not make it in YC or any other program, should you give up? Why not ask here on HN (if not against the rules). 1000 U$ each, 30 investors and you can start. It should not be too difficult and a good way to test your idea. If it's not good you'll know it. I am writing this because I raised 20.000 euros in a similar fashion and it was not that hard. (This may have been already discussed, in that case sorry, I missed it).

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Hmm... I haven't heard anybody say it was against the rules, but I've also never seen anybody do that... maybe people just perceive that it wouldn't be seen as a cool thing to do. Certainly I woulnd't want to see HN over-run with "fund my startup" posts if that became commonplace.

Probably the bigger reason it doesn't happen is all the legal and practical issues. That is, legal issues around being an "accredited investor" (etc) and any related SEC rules... and the practical issue of asking people to invest in a very early stage venture, when they're not likely to know you, be located near you geographically, etc., etc. Internet or no, a lot of people still wouldn't feel comfortable doing a deal with somebody that they can't easily arrange to meet in person and sit down and talk "face to face" with.

Do you think that legal issues can be too big to be dealt with? Maybe once a good lawyer has prepared a template then all could use it, as with NDAs, Privacy Policy and so on. As for practical issues, they are proportional to the amount paid to join. There are certainly ideas and start ups here I would be more than willing to invest 1000 U$ in. Yes, it's a risk, but investing in start ups is risky, right? Maybe those who couldn't get investors should not give up and give it try, there's always a way if you really believe in it. I just wanted to point out a possible alternative which worked for me. And I wouldn't want to see a "fund my startup" craze neither!

There are significant risks for taking on non-accredited investors assuming there is an exchange for equity, especially that many. Chances are attorneys will advise against it.

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