By Clint Swapp
Do you want to be rich? Now you can invest like the rich using a new law passed by Congress called Reg CF. And Vail hosts the first Reg CF company in the area: SmallStart Ventures Incorporated (www.smallstartventures.com)! To invest, just go to the website and follow the video link.
The traditional investing system was rigged to benefit the rich under a rule of law called accredited investors. Prior to Reg CF, investors had to meet a “rich test” to invest in companies. If the person had more than $1 million in cash or a job that pays more than $200,000 per year for three consecutive years, the person would sign an affidavit attesting to their wealth and declaring themself an accredited investor. Early-stage investing was almost non-existent for the common man and was really the domain of the good ol’ boys at the country club.
Passed into law in 2014 and started in 2016, Regulation CF (SEC Regulation Crowdfunding) now allows anyone to become an early-stage investor. Companies just like SmallStart Ventures can register to crowdfund stock and seek investors for as little as $100. Your investment is held in escrow until the company’s funding goal is met.
To put things in perspective, there are four types of crowdfunding: 1) Donations-based where individuals or groups petition tax-free contributions through companies such as GoFundMe.com; 2) pre-orders where customers put up money to help bring something to market through platforms such as kickstarter.com; 3) lending platforms to help people borrow money such as offered by lendingtree.com; and 4) equity (also known as shares of stock) solicited by companies such as SmallStart Ventures through online brokers such as wefunder.com. All are relatively new, and all use the power of the masses to accomplish their funding raising goals.
To give you an example, if you had invested $1,000 in Microsoft on March 13, 1986, the day it went public, you would be worth more than $1.6 million today. However, if you had invested in Microsoft five years early when it was first founded, your wealth would be considerably more. In fact, Bill Gates’ founder shares (for which he paid nothing) were worth $350 million on IPO day. How do you find pre-IPO investment opportunities and how do you invest?
Prior to Reg CF, you had to qualify as an accredited investor and then meet with a specialized stock broker called a broker/dealer. The broker/dealer system was somewhat disconnected so you often had to wait several weeks to get a few deals that might appeal to you. Today you can register online with a broker/dealer platform such as WeFunder (www.wefunder.com) or StartEngine (www.startengine.com) and begin investing immediately. Begin your future today. Invest locally at SmallStart Ventures.
