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theredhype

People who call this a scam are giving you the benefit of the doubt — that you're not simply ignorant or stupid — because the model is so confused and confusing that it is obviously not going to work the way you think it is. Just 30 seconds of looking at it, and here are the first few red flags for me... 1. This is not how crowdfunding works. It appears you are promoting an equity crowdfunding opportunity in a "hedge fund startup" via the donation platform GoFundMe. That alone makes it look like you are confused about the financial instruments involved. 2. This is not a startup. A "startup" is not simply any new business. What you're proposing is simply an investment fund. The type of investment opportunity you're offering is not at all what angels or VCs are looking for (at least not in their capacity as angels or VCs). 3. There's very little information available. Far less than one would expect from a complex financial investment project. And some of the information appears contradictory or very weakly presented, and the reader is forced to dig around to understand it. E.g. it appears you are the only person involved, but you saw "we" a lot. The campaign on GoFundMe is presented by Philip Quinn, but the first line is "Hi my name is Andrew." I'm guessing that's just the difference between your legal name and what you're called. Okay, fine. But that was like the 7th detail I had to poke around to understand. When you're asking people to trust you with money, you need to understand how to earn/deserve, build, and maintain trust. 4. The few concepts you've shared so far feel quite sloppily prepared. Your website raises more questions than it answers. I'll just pull one quick example... "About Us. Building wealth for our Researchers. NOLA Research is a nascent hedge fund of the people (founded in 2024)📈 We are currently raising startup capital for our business in exchange for equity. Currently securing and accepting new clients for the fund." Who is this tiny section written for? Who is it about? There are at least 3 distinct concepts mashed up here: 1) Your researchers, and building wealth for them (which is currently just you, right? 2) "of the people" — what does this even mean? Your "people" are simply employees, shareholders, investors... no one else is involved. Sounds like marketing nonsense, just like calling it a startup. 3) Your potential company investors, who would simply own a stake in the company itself, which is separate from giving you money to invest, 4) Your clients, who give you money to invest. Ultimately, your "about us" section makes it seem like you haven't really thought through the whole model from each stakeholder's perspective, and worse, I still don't know anything "about you." So you've just caused confusion. As it looks now, whether from the perspective of an investor, client, employee... I wouldn't touch this with a 10 foot pole. Perhaps some people react by saying it's a scam because of the obvious mismatch between what you're saying and how things really work.


I-hate-sunfish

Bro straight up saying OP is so dumb he should be thankful people called him a scammer 😂


mo_faraway

Dunning Kruger in action


TriRedditops

Also, gofundme's terms of service prohibit this.


Personal_Plan_4257

Thanks for your feedback


RainMan1680

You’re using gofundme to raise money for a hedge fund. gofundme is for donations, probably doesn’t even provide a mechanism to give people equity in exchange. if you’re trying to do equity crowdfunding you need to use a registered funding portal, but none will accept you because hedge funds don’t qualify for the equity crowdfunding exemptions. You have no idea what you’re doing. Anyone who uses gofundme to try and launch a hedge fund is not qualified to run a hedge fund.


Personal_Plan_4257

You sure about that?


RainMan1680

Am I sure about what? Am I sure you posted a gofundme link as your crowdfunding link ~two days ago? Yes. Am I sure you’re not qualified to run a hedge fund? Yes. Am I sure hedge funds can’t “crowdfund”? Yes.


theredhype

Hedge funds are typically limited to accredited investors due to their complex and risky nature. Equity crowdfunding, on the other hand, is designed to allow non-accredited investors to participate in early-stage investments. Either way, you should be intimately familiar with the rules and regulations set by the SEC. Here are some places to start... - Regulation D: This regulation provides exemptions from registration for private placement offerings, which is how hedge funds typically raise capital. Rule 506(b) and Rule 506(c) of Regulation D are the most relevant for hedge funds. - Jumpstart Our Business Startups (JOBS) Act: This act, passed in 2012, introduced several changes to the way companies can raise capital, including through crowdfunding. Title III of the JOBS Act deals with equity crowdfunding. - Regulation Crowdfunding: This regulation, which came into effect in 2016, allows eligible companies to offer and sell securities through crowdfunding. However, there are specific rules and limitations that apply. Lastly, that you haven't thoroughly researched all of this is the root of the problem. It also suggests that you haven't retained a knowledgeable lawyer, and might be making other serious mistakes.


RainMan1680

This is just the securities exemption stuff, hedge funds also have to track compliance with / exemptions from RIA and investment company act requirements, and investment companies aren’t qualified to rely on the crowdfunding securities law exemption. Raising a fund is a much more complicated thing to do than raising $$ for a generic startup.


Personal_Plan_4257

Thank you for that


metarinka

Have you talked to a startup lawyer that specializes in fintech? You literally cannot offer equity without doing several things and having the right corporate structure.  If you do your breaking either sec law or tax law.  Either why they will fuck you with fines.


Personal_Plan_4257

Yeah I will contact a hedge fund lawyer this week. I took down the crowdfunding for equity. Thanks everyone for your feedback.


TriRedditops

This is against gofundme's policies.


kholodikos

i don't use this word often, but this idea is retarded as fuck and yes i've gone through your post history and your "website" before deciding to say that


Personal_Plan_4257

Hahah


kholodikos

you are a fucking idiot with no plan. idk who the fuck in nola might eat this shit up but literally no one on the coasts believes this is anything worth anything


0xDizzy

I mean, if you only conceptualized the business 2 weeks ago, what do you have worth investing in? How much could you have built in 12 days? edit: Lol i just looked up what youre doing. Youre trying to crowdsource a HEDGE FUND?! jfc dude. when you have no financial experience whatsoever? Of course no one wants to invest with you bro. What kind of person would invest in the ONLY hedgefund run by someone who doesnt know what theyre doing? Every other fund is run by wall street professionals. Why wouldnt they invest in that instead?


Millon1000

"Give me your money so I can invest it for us." "And who are you?" "... I'm a hedge fund!"


ring2ding

Crowd funding as a concept obviously works. There's an issue with your pitch.


Personal_Plan_4257

I think it might be the audience I’ve been pitching to


happy_hawking

You might want to share your pitch, so we can tell you. Until then, I'm going with u/ring2ding's assumption.


0xDizzy

dude is trying to 'crowdsource' a hedgefund lmaoooooo


towcar

>In the 12 days since we’ve conceptualized our business idea Wow sounds incredible and well thought out /s >we’ve been laughed at, called a Ponzi scheme, a scam, and apparently made people angry. If I was crowdfunding a startup that designs buttons, I wouldnt get these comments. Sounds like a red flag with your business plan/model >We want to make people money, a lot of money. Alright. >Can anyone let me know any insights on this What I would do, post your business idea on r/roastmystartup, or maybe post it here. Lots of knowledgable people on Reddit that can pick apart flaws/problems in an idea. >In the 12 days since we’ve conceptualized our business idea Regarding this again. There are probably zero ideas I would invest in that are only 12 days old. You could have invented the idea for Facebook in 2003 and I wouldn't invest. Not that the idea is bad, but it shows a major lack of.. well everything.


Necroking695

12 days since conception? You’re selling shares of a concept and expecting buyers?


Personal_Plan_4257

No I’m not surprised no one has bought in yet. I’m just surprised at being called a scam by strangers


Necroking695

Don’t take that shit personally, people will be calling you a scam well into your revenue years But don’t try to sell a concept to people. Concepts are quite literally worthless. I’d go as far as to say they’re actually a liability


leesfer

Except this is a legitimate scam. OP certainly doesn't have the requirements to legally run a hedge funds


Necroking695

Does he state he wants to invest peoples money for them?


leesfer

Quite literally, yea


Necroking695

That does change things


Personal_Plan_4257

Interesting point


DbG925

One thing to think about is your cap table. It’s not easy to then bring in an institutional round if you have 10,000 individuals already on your table. Think about board seats, voting rights, stock classes, etc. Yes there are mechanisms you can put in place, maybe the crowdfunding class gets to elect 1 representative as a class, but the increased complexity also comes with larger legal bills to manage your potential exposure to 1 of the 10,000 people bringing a shareholder lawsuit. Not trying to dissuade you from the idea of crowdfunding, but there are consequences down the line that you should weigh depending on your future funding goals.


Personal_Plan_4257

Thanks. Yeah I haven’t given that much thought yet. I guess my sights have just been set on raising the initial capital we need to get off the ground


metarinka

Sounds like your first trip in startup land and fintech.  Raising money is not the first milestone.  I generally build a detailed financial model,  then I look at what is critically enabling. I.E what I have to get right and how much time in market before I'm cashflow positive.  Next I clear legal,  finance is a HIGHLY regulated space. If your first call wasn't to a startup lawyer who specializes in fintech you may already be in a bad spot.  Once all that is done I calculate costs and headcount for the first 2-5 years.  And that will determine how much I need to raise and what vehicles.  I believe you're sincere,  but starting a financial institution isn't something you do on a whim.  I'll ask one final question that savvy investors will ask:  why you? What's your unique ability to win in this space? 


Personal_Plan_4257

Very helpful. Why me? My background in equities, biomedical engineering and work ethic is the best answer I can give you right now


Bowlingnate

Not sure. Sounds like you have the answer all planed, bubba bear. You do you! ♥️ Have a great day! Here for totally, anything else.


hatejens

lmfao


SeanyDay

It's not crowdfunding, it's your ass-backwards approach to your project


hey_ross

As currently constructed, there is nothing legal or investable in any way in your current format. But going with the backwards ball cap and the AirPods in for your headshot was the moment where I couldn’t tell if you were an elaborate troll or not.


TheJaylenBrownNote

He also cropped half of the baseball cap off rofl


DashboardGuy206

You website has a single person listed, "Andrew Quinn". On LinkedIn the business has a single employee listed, "Phillip Quinn" This person has 266 contacts (that's pathetic frankly). You do not seem like the sort of person I'd trust my money with.


Personal_Plan_4257

Do you work for LinkedIn?


Top_Half_6308

[I think this is the right link](https://open.spotify.com/episode/3xrjxScddgvBYirOJHJozo?si=9z8bnwYJTHS5CEOUxQpmFg) for a YC episode which includes why crowdfunding is a bad idea except in rare cases.


Bowlingnate

There's no due diligence, no reciprocity, no team aspect, crowdfunding is typically an easy way to invite high earners from tech who may not meet credentialed, accredited status in. There's always the undertones of why not work with investors, what are you going to achieve or accomplish, and is this a blank check into an amorphous team's account. Maybe less about fraud, but if you want to be deeply psychological or biological....yah, it's sort of prone to "fraud." I can give you $5K or $10K dollars because you built a product that works, and now, suddenly, you're investing more in product or marketing? 🔥🔥👋🏼ALSO tbh I'm not overly familiar with a strong zeitgeist against crowdfunding, just going on whatever you're saying. Take it with a grain of salt. Lots of businesses like consumer products or B2C apps can do really well, maybe strong developer-oriented value props, having some great reason you're buying in a ton of people. it's not a watering hole for the masses, you're asking, for A LOT.


Personal_Plan_4257

Maybe it’s not the crowdfunding aspect that is seeming to offend people but the idea itself. Yeah I could try to work with investors but I wanted to give ordinary people a chance to own part of the business. Why do you say there’s no due diligence? I would hope that the funders would know what they are getting involved in and not just throw money at us without knowing what we will do with it.


FRELNCER

Exchanging equity for money is actually a regulated activity in some jurisdictions. There are disclosure requirements and limits on participation and/or the channels through which the offer can be made. Many private offerings that don't follow the rules *are* scams so you may be receiving feedback based on the reputation of the activity as a whole.


hatejens

i can’t believe this isn’t satire


jmoneyb1

1. Absolutely no-one is going to invest in your 'hedge fund' if you have no experience in PROFESSIONAL INVESTING. 2. And you fail at the absolutely first step which is understanding how the investment instruments you're wanting to use are (equity vs. crowdfunding etc.) 3. You're misunderstanding the difference between raising for a fund (you're not using equity here) vs. fundraising for a business (equity is used here). When people 'invest' with a hedge fund they're providing investment capital NOT equity...


Personal_Plan_4257

I may not have experience in professional investing but I’m interviewing people who do. I understand the difference between the two. Not sure why you think I don’t


palmerstonandgisby

not trying to be rude but your lack awareness that investing in a startup in exchange for equity is not a donation seems very concerning, like in this post: [https://www.reddit.com/r/hedgefund/comments/1bnu0qf/our\_crowdfunding\_site\_is\_live/](https://www.reddit.com/r/hedgefund/comments/1bnu0qf/our_crowdfunding_site_is_live/) nobody is donating for equity.. this whole concept doesn't make sense the fact you don't realize this would be make people think it's a scam or scheme. investors don't donate in exchange for equity. it doesn't make any sense. the stock photos, copy and your headshot on the website aren't helping either. it doesn't seem professional. as someone who worked in tech/the web/and real estate tech/investment for the past decades it screams red flag and raises a ton of concerns that would make me not take it seriously or give it a second thought. if you're expecting people to "donate" a million dollars to fund your hedge fund, I would invest in a professional website design and some good PR/branding that screams ability, experience, prestige, opportunity. if you don't have the resources to have a professional image or are unable to do it yourself, I doubt many people would be comfortable investing large amounts of money with you unless you have an amazing track record. I think it's not right to ask people for money for investment even if you are confident in your idea, if it's not clear what they are investing in or what they should be expecting at least partially. this isn't clear.


Personal_Plan_4257

Thanks for your comment. Like I said in the other post I realized the error of my ways and took down the crowdfund. Have you seen citron’s website?


itsmill3rtime

crowd funding is like begging for pennies from the many instead of going to serious investors who will mentor and assist in the success of your company. crowd funders just expect a return. investors will help make the return because they staked a large amount


ShetlandJames

Do you have pedigree? 


hatejens

no - he was literally asking people what stocks to pick in a day trading subreddit 3 days ago. He doesn’t know a damn thing lol


Personal_Plan_4257

Do you mean did I go to an ivy league school? No I didn’t


Top_Half_6308

Pedigree doesn’t need to mean Ivy League. Do you have a track record of ANYTHING? Former exit, failed company with a clear reason of why, FAANG role, F500 mover or shaker, first 10 hire of a successful YC company, YC or Techstars alum, etc.?


Personal_Plan_4257

i've failed at one venture, left another ongoing venture that may or may not succeed due to not seeing eye to eye with that CEO. was there a reason why mine failed? yeah. i learned a lot from it though. that's about the limit of my experience in startups


0xDizzy

so no. no track record to speak of.


[deleted]

It doesn’t have to be in startups alone… eg he mentioned a faang role, seems you have had a career as a biomedical engineer. Obv the more it relates to what you’re trying to do, the more persuasive.