Are you an accredited investor? Most people don’t even know what that is! Here’s what it means:
An investor who meets the net worth requirements for an accredited investor under the Securities & Exchange Commission’s Regulation D is one who has a net worth of more than $1 million (including spouse) and who earned more than $200,000 annually ($300,000 with spouse) in the last two years.
As you can imagine, accredited investors get access to some really nice financial deals and opportunities. You, maybe not so much. If you’re non-accredited, you basically have to sit on the sidelines and watch – that is until Regulation A+ came along! This is exactly why the popularity of doing a Reg.A offering has become so attractive to businesses looking to raise money.
It used to be “all or nothing”, but Title III of the 2012 Jumpstart Our Business Startups now allows non-accredited investors to have access to alternative investments in equity crowdfunding deals. Unlike donation-based crowdfunding sites, Regulation A+ offers investors real stakes in small and startup businesses as in actual stock and not just in return for t-shirts or other trinkets.
And regulation A+ has been going strong in 2016, especially in the real estate industry where non-accredited investors can participate in deals only the wealthy could be part of before. With just 3% of the current USA population qualifying as “accredited investors”, Reg.A is a vehicle that totally levels the playing field and has opened up a huge door of opportunity.
While non-accredited investors were previously shut out of investment deals pitched solely to the wealthy, they now can become investors and evangelists to companies they already know and like – which makes Regulation A+ great for both investors and the companies looking to use Reg.A to raise money as well.
In fact, with regulation A+, businesses may have access to funds they never even imagined before. It may be that customer who likes them on social media. Or maybe someone who just viewed one of their YouTube videos! By properly marketing a Regulation A+ offering, there’s a whole pool of potential investors accessible right from your keyboard. (And the internet is a large place!)
While some consider the entire Regulation A+ marketplace like the Wild Wild West, there are still many rules and regulations that must be adhered to, which of course protect both the investors (both accredited and non-accredited) and the company raising money. In addition, there are some kinks in the system that need to be worked out too.
The bottom line is that Regulation A+ crowdfunding is making it easier for the millions of non-accredited investors to get access to some great investment opportunities. We are watching social media make an amazing transformation in the equity markets, and the Reg.A Funding Group is constantly keeping abreast of it all so clients can get reap the benefits of all the research and options that are available. Non-accredited? Non-problem!
If Regulation A+ sounds interesting to you or your business, request a free no-obligation consultation from industry experts who know this market inside and out. Your information is always kept in the strictest of confidence.