Episode 30: Wealth Creation Tips using Equity Crowd Funding - with Karen Rands
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The Legalization of Equity Crowd Funding was the catalyst for the great Economic Democratization of the Capital Markets. Although crowdfunding started with reward based, the advent of the JOBS Act in 2012 introduced 4 ways to raise equity capital from the crowd. The expanded pool of additional investors are not your typical angel investors. These 4 methods remove the invisible wall between entrepreneurs and their potential investors. There is still great confusion on how to best use equity crowdfunding to raise capital, and even more so, how traditional retail stock investors can get involved in a low risk way and start investing in the entrepreneurs with 'unicorn potential' or the small business owners that are well established and are seeking an amount of growth capital that is not available from their bank and they don't fit a Venture Capitalist or Private Equity Fund criteria. They can be as solid of an investment as a retail stock, but with much greater upside potential. The 4 methods to solicit from the general public, to crowd fund, are not created equal. Each has it's unique benefits to entrepreneurs and investors.
Watch and Listen as Karen explains the difference in the 4 equity Crowd Funding, Direct Public Offering methods: Intrastate Exemption (Reg D 504), Reg D 506c, Reg CF and Reg A+.
Get the book that launched a movement, Inside Secrets to Angel Investing : Step-by-Step Strategies to Leverage Private Equity Investment for Passive Wealth Creation.