Editing Startup company (section)

===History of startup investing===
After the [[Great Depression]], which was blamed in part on a rise in speculative investments in unregulated small companies, startup investing was primarily a word of mouth activity reserved for the friends and family of a startup's co-founders, business angels, and Venture Capital funds. In the United States, this has been the case ever since the implementation of the [[Securities Act of 1933]]. Many nations implemented similar legislation to prohibit general solicitation and general advertising of unregistered securities, including shares offered by startup companies. In 2005, a new Accelerator investment model was introduced by [[Y Combinator (company)|Y Combinator]] that combined fixed terms investment model with fixed period intense bootcamp style training program, to streamline the seed/early-stage investment process with training to be more systematic.

Following Y Combinator, many accelerators with similar models have emerged around the world. The accelerator model has since become very common and widely spread and they are key organizations of any [[Startup ecosystem]]. Title II of the [[Jumpstart Our Business Startups Act]] (JOBS Act), first implemented on 23 September 2013, granted startups in and startup co-founders or promoters in US. the right to generally solicit and advertise publicly using any method of communication on the condition that only [[accredited investor]]s are allowed to purchase the securities.<ref>{{cite web|url=https://www.sec.gov/spotlight/jobs-act.shtml|title=Jumpstart Our Business Startups (JOBS) Act Spotlight|work=SEC.GOV|access-date=1 July 2014|archive-date=27 May 2020|archive-url=https://web.archive.org/web/20200527023444/https://www.sec.gov/spotlight/jobs-act.shtml|url-status=live}}</ref><ref name="ABC News">{{cite web|url=https://abcnews.go.com/Business/dark-side-crowdfunding-startup-companies/story?id=20343963|title=Newly Legal: Buying Stock in Start Ups Via Crowdsourcing|work=ABC News|access-date=24 September 2013|date=24 September 2013|archive-date=9 June 2020|archive-url=https://web.archive.org/web/20200609155913/https://abcnews.go.com/Business/dark-side-crowdfunding-startup-companies/story?id=20343963|url-status=live}}</ref><ref name="Bloomberg">{{cite news|url=https://www.bloomberg.com/news/2013-09-24/levine-on-wall-street-chrysler-s-unwanted-ipo.html|title=Levine on Wall Street: Chrysler's Unwanted IPO|work=Bloomberg|date=24 September 2013|access-date=24 September 2013|archive-date=22 October 2013|archive-url=https://web.archive.org/web/20131022100704/http://www.bloomberg.com/news/2013-09-24/levine-on-wall-street-chrysler-s-unwanted-ipo.html|url-status=live}}</ref> However the regulations affecting equity crowdfunding in different countries vary a lot with different levels and models of freedom and restrictions. In many countries there are no limitations restricting general public from investing to startups, while there can still be other types of restrictions in place, like limiting the amount that companies can seek from investors. Due to positive development and growth of crowdfunding,<ref>{{cite web|url=https://www.crowdsourcing.org/editorial/global-crowdfunding-market-to-reach-344b-in-2015-predicts-massolutions-2015cf-industry-report/45376 |title=Global Crowdfunding Market to Reach $34.4B in 2015, Predicts Massolution's 2015CF Industry Report|work=www.crowdsourcing.org|url-status=dead|archive-url=https://web.archive.org/web/20160306084019/https://www.crowdsourcing.org/editorial/global-crowdfunding-market-to-reach-344b-in-2015-predicts-massolutions-2015cf-industry-report/45376|archive-date=6 March 2016}}</ref> many countries are actively updating their regulation in regards to crowdfunding.