Founders Flash

This week’s articles discuss crowdfunding under the JOBS Act, profile a start-up that succeeded without investors, question whether entrepreneurs should pitch VCs, and explore the possibility of a tech bubble in Silicon Valley.

Be Careful, Entrepreneurs: Crowdfunding Securities Offerings Aren’t Yet Legal - Chris Manderson, PEHub

Amid all the excitement over the JOBS Act’s creation of an exemption for crowdfunding, few have noticed that crowdfunding securities offerings are not yet lawful under the Securities Laws.

Smart Education: How Hit $70M In Revenue Without A Penny From Investors – Rip Empson, TechCrunch co-founders started their business with $20K from their savings and haven’t taken a penny of outside funding since.

Entrepreneurs Shouldn't Pitch Their Ideas To Venture Capitalists - John Greathouse, Forbes

If you are fortunate to pitch a sophisticated investor in person, assume they already believe in the veracity of your idea, the market and the underlying technological trends.

Disruptions: With No Revenue, an Illusion of Value – Nick Bilton, New York Times

If there is a tech startup bubble in Silicon Valley, it’s likely to be tied to the practice of creating disruptive technology for no other reason than to get acquired.

This post was authored by Founders Workbench.

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