United States retail can also vote for startups, but it's hard to buy the next Facebook

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Soon, the United States retail investors will be able to invest in startups.

United States Securities and Exchange Commission last week adopted the equity raising provisions. Yihou, startups and small businesses are available through brokers or online fundraising platform to find investors. And investors, it could be anybody.

The past, entrepreneurship fundraising channels, is that venture capital, angel investors, investment banks and other "qualified investors", and they are concentrated in New York, Boston, San Francisco and the big financial center, apparently is not so easy for outsiders to enter. Now, entrepreneurs can turn to a wider range of fundraising by the crowds.

2012 through the start-up Promotion Act (JOBS Act), the industry is how to protect immature investors, protection of the start-up companies, reduce fraud and concerns. United States Securities and Exchange Commission wants to address these problems through a series of new rules.

It used to be investing in start-ups is a threshold: one is to have a million dollars, second, earning more than $ 200,000. New rules relax the restrictions. However, the United States Securities and Exchange Commission adopted a set of rules for immature investors limit the amount of investment.
startup companies in USA
Considering that really will be the next Myspace as the next Facebook, all out all in the pension, the quantitative provision is necessary for:

Individuals with annual incomes or net worth under $ 100,000, the investment amount does not exceed $ 2000, personal income or net worth not more than smaller 5%. Individuals whose annual income or net worth above $ 100,000, invest not more than 10%.

For entrepreneurs and small business owners, the new regulations allow them raise funding amount was raised to $ 1 million a year.

United States Securities and Exchange Commission requiring all raise venture submitted basic financial details, however, only a portion of the full audit report need to be submitted. Yiqian, experts worry that those who are in the early stages of entrepreneurial businesses, independent audit of the expenditure is too high. At this point, the new rules raise credit card to decide how much information is required to disclose. For example, raised $ 100,000 below the audit report is not required, as long as the internal financial personnel to submit financial documents on the line.

Where to change?

With new rules, looking for venture funding and investors look for investment targets, either in existing brokers to catch lines, can also be traded on the Kickstarter equity raised platforms on this line. And the latter to collect enterprise financial information, and in accordance with the United States Securities and Exchange Commission disclosure rules.
kickstarter

The advantage of this type of platform is, not only to establish a fair trade market, can figure out how to invest to help potential investors there. Platform can be a large number of startups and projects to determine what is best, can take the initiative to invest in these enterprises and projects, and encourage ordinary investors are proceeding.

Used to raise project on Kickstarter to return perhaps only product, such as Pebbl, Oculus Rift, after people got involved in the raise is venture company stock. Think is an exciting thing.

However, experts suggest, invest it slowly. Because, from the large probability for most startups have ended in failure, venture firms win percentage is relatively small.

Individual angel investors and venture capitalists, can obtain millions of dollars from a wise investment returns. However, you want to know is, they do not just invest in the success of entrepreneurial companies, more than they usually are, and know that most of them will fail from the outset, but as long as there are one or two grew up, was enough to earn.

In addition, they have relatively strong capital, industry experience, also has a dedicated research team, these are ordinary investors are lacking.

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