EC Your Right To Invest In Startups

So as much as I’d like to say that investors should look to small caps for growth, I can’t… Small caps today aren’t cheap. It’s hard to find very many stocks at all that can reasonably be called a bargain.

There are far better options in private markets. I’ve seen the deals, and participated in dozens of them. It’s an extremely exciting market that everyone deserves the chance to participate in.

The Future Is Bright

The future of investing is everyone being able to buy equity in private companies, both early-stage startups and later-stage growth companies.

And we’re already starting to see this happen. In a few months there will be private startup deals that anyone can invest in online, for as little as $100.

But progress is slow. So far the SEC has implemented only one of the two JOBS Act provisions that will allow investment by anyone.

These first deals that everyone will have access to will be later-stage growth opportunities – companies raising anywhere from $20 to $50 million.

This is Title IV of the JOBS Act, also known as “Regulation A+” (more on that here).

It’s a good start, but the really interesting part comes with Title III. This will enable investment in early-stage startups (companies raising up to $1 million).

Early-stage is riskier, but with this risk comes large potential reward (the highest potential of any investment I know of, certainly).

The SEC has been slow to act on implementing Title III. If you live in the U.S. and want to nudge it in the right direction, contact your Congressional representatives.

Ask them to tell the SEC to finish what it started with the JOBS Act. Tell them that it’s past time Title III went into effect.

Who knows, they might listen…

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Jason Hamlin 5 years ago Contributor's comment

"Your Right"???? I think it should be "You're Right" as in You Are Right.

Caitlin Snow 5 years ago Member's comment

I took it as 'your right', as in, you have the right, learning what your rights are, etc. That's what to write to your congressperson about - getting/preserving those rights.

Jason Hamlin 5 years ago Contributor's comment

you are correct, i overlooked that first sentence. sorry about that. cheers.