by the PonoMusic Team
Do you have to be an accredited investor to invest? With a min of $5k investment what is the equity ownership in the company? Thank you.
Accredited investors only? Why would Kickstarter and Pono limit $5,000 investments to people with a net worth over $1 million no including home or a safe annual salary of more than 200k? That makes zero positioning sense for your corporate identity, if you'll pardon the expression. And I just noted so on my facebook page. Power to the (accredited) people.
Seriously? Accredited investors only? No more patch of ground people needed, I guess?
just another flagrant kickstarter rule violation
Projects can’t fundraise for charity, offer financial incentives, or involve prohibited items.
We’re all in favor of charity and investment, but they’re not permitted on Kickstarter. Projects can’t promise to donate funds raised to a charity or cause, and they can’t offer financial incentives like equity or repayment. We also can’t allow any of these prohibited things.
I also fall short of what an Accredited Investor is in the States, I believe. Might we be considerred 'general partners' with Pono Music as we are established investors in your product? If so, I could see myself stepping up. Also, I note that the definition varies up here in Canada. Can you comment on investment from the Great White North? Thanks!
There are strict (Federal) regulations when it comes to investing (in the USA), the regulations and requirements are not set by Pono (or other companies for that matter). As far as the net worth and yearly salary vs. the minimum investment amount, again, these numbers are defined and regulated by the US government. (There may be changes to these rules in the future though, to make it easier for people to do "small-scale" investments at some point..?)
That aside, this does seem to violate Kickstarter rules.
Violation of Kickstarter rules how righteous everyone should open a ticket
I don't think it's a violation. They aren't offering us equity or fundraising here. They are just giving us an FYI and linking to a website where this is available.
As much as I like the project I would like to wait till I actually receive my Pono player so I can evaluate it and make an informed decision.
I know that people in the UK are having to wait longer for their players but the request for further investment is a bit premature at this stage.
Becky they are kickstarter rules
This includes link-bombing, promoting a project where it shouldn’t be promoted, sending unsolicited @’s on Twitter, hyping third-party services, and using email lists from outside sources, to name a few. The comment and messaging systems on Kickstarter are here so people can communicate, ask questions, and cheer one another along — not for spam.
i have to agree, this update makes me nervous for a few reasons. its early, its strange, its at best a strong bending of the kickstarter rules. and its a little tone-deaf to the wider audience. hopefully it all works out.
@David I agree with you. I get what they're trying to do, but it feels weird hearing it through KickStarter.
This notice was simply provided as a courtesy to our Kickstarter backers, giving the people who helped us launch the company the opportunity to partake in the future of Pono. If Kickstarter considers this to be against their rules, we're more than happy to do our future announcements on the Pono Community where thousands of our amazing backers are already actively engaged and helping us advance the cause. As it should be self-evident, Pono has no trouble getting its message out and doesn't require the use of Kickstarter to do so.
To be fair, Pono needs to adhere to Kickstarters ruled and regulations, otherwise KS future and past projects can do this, (or could have done), type of advertisement.
"As it should be self-evident, Pono has no trouble getting its message out and doesn't require the use of Kickstarter to do so." -Pono
Weeeeeeeeeeel Good For You Cocky Pono Employee!
-signed "Amazing KS Backer" :/
Pono music you want the investment? make it accessible to ordinary people! your offer now it sounds like - a proposal gloves for people with no hands! I have the money and the desire to invest, but I am not an accredited investor! you want to give people the opportunity to become ownership? so give us this opportunity!
It is not in our hands. It's federal regulations. That will likely change at the end of this year and then other doors will open up.
Our interpretation of the rule was that you cannot offer backers equity in exchange for donations. We never ever did any such thing during the campaign and the campaign is now closed. So this was simply a courtesy notice to our backers to avail them of the opportunity.
BTW, the reason for this rule is exactly the existing federal regulation that precludes non-accredited investors from participating in equity-based crowd funding.
As always thank you for your support.
PONO people please. No rationalization or spinning on this. You folks goofed on this one. I too would invest, but according to the qualifying requirements can't. PONO got an overwhelming grass roots response, and some jive SEC regulation, and logic dodge by PONO about possibly fixing this in the future doesn't work.
PONO needs to do the following;
1.Retract the current investment offer impacting everyone.
2. Figure out how to truly incorporate all the original backers with this. Then press on with it.
You can't possibly be serious about economically segregating people from this majestic grass roots effort that spread like wildfire.
This is by far the most effective grass roots effort I've ever been involved with. I'm 61 so I've been around.. Been bamboozled, conned, lied to, screwed financially, while being promised otherwise. This has a stench to it that smells like greed. I hope I'm wrong.
PONO needs to act quickly on this one.
It's too bad Billy Mays isn't with us as I'm sure he'd love to endorse your product on an infomercial. Maybe you can get the Sham-Wow guy or even Dionne Warwick.
I agree there was a "goof" up on this one. I applied on receipt of the email I spent a few days working out if I met the criteria and after 3 days of my pledge I received an email saying "we are not able to accept investments from International (non U.S.) investors into this offering" . This should have been indicated in the courtesy notice l as I feel that the very international support you had is being excluded from this opportunity. If its regulatory that only US people can apply that that should have been clear.
I know how you feel Rajesh. Where are you from? I live in Canada and went through the whole process of establishing myself as an 'accredited investor' and welcomed into the fold before getting the same email you did about. US citizens only. Feel a little bummed out.
Oh Pono and Neil. Please can you save a little of your company for us international investors to make a difference too? Many of us would value being able to play a part in this company going forward as we support and value the cause, and having this as an only US based offer is such a limiting factor for you, the technology, and the cause. Please find a way - the global will is there! Lx