SEC approves Equity Crowdfunding

[AnilG]

Yesterday SEC adopted rules for startups to raise equity investment from unaccredited investors, As majority of forum participants are retail lenders, what are your thoughts on also participating on equity side? What type of data readers would like to see for such opportunities? Minimum investment? Anyone already involved with any of equity crowdfunding platforms?

It appears SEC is also pre-empting state regulators with Blue Sky Law exemption for tier 2 so such opportunities should be available in all states. I am sure there will be some good opportunities as well as scams.

SEC press release at http://www.sec.gov/news/pressrelease/2015-49.html#.VRSPA_nF8qx" class="bbc_link" target="_blank">http://www.sec.gov/news/pressrelease/2015-49.html#.VRSPA_nF8qx
A good breakdown of rules at http://www.crowdfundinsider.com/2015/03/65007-the-reg-a-bombshell-50m-unaccredited-equity-crowdfunding-title-iv-takes-center-stage/" class="bbc_link" target="_blank">http://www.crowdfundinsider.com/2015/03/65007-the-reg-a-bombshell-50m-unaccredited-equity-crowdfunding-title-iv-takes-center-stage/

[Fred]

Thanks for bringing this up.  This is a great new opportunity indeed!

Existing angel investors and venture capitalists might be upset, but many of us will soon brush up on our company valuation techniques.

[rawraw]

https://forum.lendacademy.com/index.php?topic=3129.msg28277#msg88888888Quote"> from: Fred on March 26, 2015, 11:04:15 PM

[michaeljones]

This is really a great opportunity for the unaccredited investors. Now they can fund up companies and small business in return for equity. This will give them the ownership of small piece of that business. http://crowdfund.co/equity/" class="bbc_link" target="_blank">http://crowdfund.co/equity/

[SLCPaladin]

I have not participated in any equity crowdfunding ventures, nor am I sure that I will in the near-future. Having said that, I'm glad it exists. Time will tell whether this will be a net positive in terms of the efficient allocation of capital, or whether the opportunities that retail investors are exposed to are sub-par resulting from "adverse selection."

[wiseclerk_com]

I am dabbling on some European platforms and have invested in over 30 pitches. It has been a mixed bag, but I am satisfied with most of the investments I have done on Seedrs
http://www.p2p-banking.com/countries/uk-seedrs-review-my-experiences-since-joining/" class="bbc_link" target="_blank">http://www.p2p-banking.com/countries/uk-seedrs-review-my-experiences-since-joining/
Of course the finaly tally for my portfolio will only come in a few years time, when (hopefully) some exits will have materialized.

[Timbo]

We have had Equity Crowdfunding here in the UK for about 3 years with some very mixed results and few realisations as yet.

The model that i think works best here is that of Syndicate Room which only offers investments where an Angel Investor of some note and substance has done the due diligence and knows something worthwhile about the market place. They also ensure no dilution or dodgy voting structures.

Only one realisation as yet, but some promising investments and it is comforting to have an expert on your side with skin in the game.

Timbo