{"id":9098,"date":"2010-07-06T01:18:13","date_gmt":"2010-07-05T16:18:13","guid":{"rendered":"http:\/\/asiajin.com\/blog\/?p=9098"},"modified":"2010-07-06T01:18:13","modified_gmt":"2010-07-05T16:18:13","slug":"japan-sec-dealers-assc-postpones-banning-individual-investments-on-pre-ipo-start-ups","status":"publish","type":"post","link":"https:\/\/asiajin.com\/blog\/2010\/07\/japan-sec-dealers-assc-postpones-banning-individual-investments-on-pre-ipo-start-ups\/","title":{"rendered":"Japan Sec Dealers’ Assc Postpones Banning Individual Investments On Pre-IPO Start-ups"},"content":{"rendered":"

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\nJapan Security Dealers Association<\/a> proposed banning IPO of companies who have been fundraised by individual investors except the companies’ employees and founder’s family, and that news caused a sensation in this country’s tech start-up community.\u00a0\u00a0 The association aimed at preventing fraud over unlisted shares, but the banning would make start-ups harder to go IPO if they’ve been fundraised by individuals in the seed stage financing.
\nCompany founders who had been financially assisted by their friends and colleagues were asking people for expressing their objections against the proposal on Twitter, as a result, the association was forced to postpone the banning.
\nPublic comments, a system giving citizens opportunities to express approvals for or objections against a proposal before deciding it, have been used as a good excuse by conservative bureaucratic organizations and the old-economy.\u00a0\u00a0 But Twitter leveraged its social media power in this case.
\n“Can a start-up own a capital enough to devote themselves to their business or not?\u00a0 That decides if they can survive.\u00a0\u00a0 Usually that kind of money comes from individual “angel” investors”, a CFO of a start-up says.
\n“We were not intended to ban angel investments, but probably the expression of the proposal might be insufficient to make people understand correctly because we’ve been criticized.\u00a0 we may have to yield a countermeasure to this.”, Hirofumi Uchio, the association’s general manager of self-restraint dept. says.
\nSee Also:<\/strong><\/p>\n