The press release says ShiftPixy, a “Next Gen Gig Economy provider” and disruptive, too, is launching an IPO under the year-old Regulation A system. We’re already to the next generation of on-demand and gig work. Like Web 2.0 all over again?
The company, ShiftPixy, does not appear to have raised any funding to date and its news archive suggests it is less than a month old. The site is outwardly well executed but I see little evidence of activity by the company. Proceed with extreme caution in all Regulation A, or any, investing. These issues, in particular, carry reduced reporting and fiduciary liability by the officers than a traditional IPO. And this company appears to be less than a month old.
That said, the model of using local engagements with companies is potentially interesting. It’s a middle-man play wrapped in some cutting edge jargon — the site makes reference to itself as an example of the Distributed Autonomous Organization. However, its success lies entirely on the adoption of an untested labor category. And $5 million, the maximum that can be raised under Regulation A, is not a lot of money to drive a new standard, especially one that will be subject to Internal Revenue Service scrutiny.
Caution. Vision from the press release ahead:
ShiftPixy, Inc. (“ShiftPixy® or the “Company”)a disruptive Next Gen GIG Economy provider of unique insurance products, regulatory compliance services, proprietary human administration tools and variable labor force provider, that plans to enable unemployed, under-employed or part-time and/or full-time individuals to apply for variable shift work from businesses in their local market, today announced that, it has created a new hybrid type worker classification status, designed to avoid the pitfalls inherent in trying to classify shift workers as independent contractors in the traditional GIG Economy model… pitfalls which can lead to crippling litigation.