USD 7 Million and counting – USA shouts out Yay! to Title III of the JOBS Act

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Within a span of just four months of Title III of JOBS Act getting a legal status; it has already raised investment to the tune of USD 7 Million.

The provision allows new ventures, startups, small businesses and SMEs to raise up to USD 1 million annually through the equity crowdfunding route from accredited as well as non-accredited investors.

The definition of Accredited investors varies from nation to nation. As per US Securities and Exchange Commission, to be considered an accredited investor, ‘one must have a net worth of at least one million US dollars, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.’

Those who do not meet the criteria to become an accredited investor, apparently belong to the non-accredited investor fraternity.

A study done by Wefunder, one of the frontrunners in the US equity crowdfunding space, revealed, “More than 9,000 investors have contributed $7.14 million so far, helping to fund 29 successful offerings, three of which raised the full allotted amount of $1 million in capital.”

The report also claimed that 70 percent of the Title III investments were under $500, whereas more than 30 percent were exactly $100. That denotes, crowdfunding under layers is a tool advocating and propagating financial democracy; where everything is ‘of the people, for the people and by the people.’

Equity Crowdfunding allows businesses to pump in the necessary growth capital without needing to sacrifice their freedom. It is being considered as a total game changer for local businesses and mom-and-pop store, where one can appeal to his/her kin and kith to invest in one’s business against ownership stakes. Save for; one can also pool in their customers or employees as well to invest in the organization.

Post the enactment of Title III of equity crowdfunding, the role of this provision is going to be integral in channelizing the household savings into investments and propelling the economy towards a brighter tomorrow.

The Biggest Challenge

As per the industry experts, the biggest challenge that the equity crowdfunding industry is facing today is the widespread unawareness about this technology. To churn out the latent potential of this technology a lot of effort will need to be put to educate the people about the pros and cons of investing in this device.

However, once people begin to believe in this technology, it is going to see no U-turns from there on. Equity Crowdfunding will bestow the courage to every mom-and-pop store to take their businesses to the next level. To dream bigger; to invent; to innovate; to take chances. Future of entrepreneurship and innovation is sure to get empowered by Equity Crowdfunding.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com.
CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

 

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