Meec introductory presentation jan 2015 copy
Yesterday, September 23, a new $trillion age of self-directed accredited (and soon non-accredited investor) capital formation has dawned in America. Today, for the first time in 80 years, private US companies can “directly solicit” accredited investors to purchase up to $1 million per year of their private company stock via “equity crowdfunding.” Alternative Asset managers and financial sponsors can also advertise and raise money directly from accredited investors for hedge funds/oil drilling partnerships or private equity deals vs. brokers.
Deregulation of securities laws means Madison Avenue meets Wall Street and private “Angel” venture capital investing goes public with non-accredited households and oh shudder the thought: our all-knowing government finally has admitted that private citizens can evaluate early-stage investments by themselves…glory be!
More important: SOMETIME in 2014 the new age of what we call “DIY Capitalism” explodes when the final JOBS Act regulations add 40 million non-accredited investors to the DIY Capitalism economy via equity/debt crowd-funding and “Super Reg A” public securities offerings.
Soon “Emerging growth companies” with under $1 billion in revenue (really…an $800 million company is still emerging?) will qualify to raise money DIRECTLY from accredited investors AND non-accredited in equity crowdfunding deals without having to be a public company.
More important still: Up to $50 million can NOW be raised by private companies via “Super Reg A” exempt offerings with little or no “suitability” standards by private companies.
Let’s call these new equity crowdfunding and exempt-from-registration securities “Public Venture Capital”. Why should you care?
Making money…and lots of it. The Angel Investor Performance Project (AIPP) collected information from 539 angel investors who were members of eighty-six angel investor groups and who had experienced 1,137 exits from their angel investments. The average return from their angel investing?
2.6X—260% return on capital. Average holding period 3.5 years. NO daily swings of publicly listed shares up and down—just a quarterly report on the company and 41 months later—a VERY nice check taxed at long term capital gains!
Compare Angel VC investing to traditional VC Funds. The Kaufman Foundation researched VC fund returns over the last 15 years—they found MOST VC funds do not EVER return the original cash invested—and overall returns after fees are just 2% a year!
Just think: How well could you do as a DIY Capitalist in public angel investing if you had access to hundreds of these deals—from all over the country and not just your backyard? What if one platform collected all the available deals and rated them? (Hint: our new digital media company DIY Capitalist Media LLC will soon be able to answer that question!).
In short, what the Internet did to booksellers, music, television, travel agents and stock brokers has now come to non-accredited investor capital formation. Public venture capital and “alternative asset” investments previously sold via traditional securities broker-dealers and investment banks to institutional or accredited only investors is rapidly being disrupted.
We call this mass expansion of the scope of DIY/self-directed asset classes and the disruption of traditional alt asset sponsors “DIY Capitalism.” This new investor class of both accredited and non-accredited investors in previously Reg D private placements/Angel venture capital and alternative asset classes are “DIY Capitalists.”
In the next 90-180 days a major inflection point for DIY Capitalist Economy explodes:
TODAY—General solicitation of accredited investors is for the first time legal for APO/IPO and public/private corporate issuers and Reg-D alternative asset management issuers (hedge funds/commodity pool operators/private equity and direct participation securities). Madison Avenue comes to Wall Street.
The LendingClub.com IPO—in the Fall of 2014 this DIY peer-to-peer lending platform will raise nearly a $1 billion dollars to expand it lending program from $2 billion to an estimated $20 billion by 2018. DIY capitalism like peer-to-peer lending rapidly moving mainstream. What used to be called “loan syndication” or securitization for institutional investors comes to Main Street.
US Equity/Debt Non-Accredited Crowdfunding Regulations Final—Non-accredited households with up to $100,000 or more in income will be able to invest up to $5,000 per year in equity and debt crowd funding deals. $100k+ households are eligible to invest up to 10% of their income or net worth in equity and debt crowd funded venture deals per year.
40 million+ non-accredited households eligible to invest as DIY Capitalist investors bringing estimated $300 billion per year in the new equity/debt crowdfunding and Reg A exempt securities asset class. In short, Reg-D accredited investing is coming to the non-accredited investor class.
$5M-$50M Non-Accredited Directly Marketed IPOs/APOs Deals Soon Eligible in 50 States—new non-accredited general solicitation rules for Reg A Public Offerings can raise between $5 million to $50 million from non-accredited investors versus $1 million a year cap for equity crowdfunding. $1M annual cap for equity crowd funding keeps equity crowd funding highly local—Super Reg A capital formation goes national.
Already multiple new “do-it-yourself” or self-directed DIY digital investing investment platforms and asset classes are being created and disrupting traditionally institution-only financial service providers.
Peer-to-peer lending from DIY loan syndication platforms is just the latest example of the DIY Capitalist revolution.
Viva la Revolution!
Pulse Beverage (PLSB) Now Deals Directly With Their Consumers |
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Recently announced, Pulse Beverage has revamped their website and are now selling their Natural Cabana® Lemonade and the PULSE® brand of functional beverages on their website. |
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Barfresh Food Group (BRFH) Adds US Foods and Shakey's Restaurants to Their Growing Network |
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Big news for Barfresh with the addition of not one, but TWO new companies to its ever growing network. |
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Barfresh Food Group (BRFH) Adds $19B US Foods to its Distribution Network |
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Barfresh opens distribution and received its first order with US Foods in Albuquerque, New Mexico. |
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MaxD Sound Debuts At 2013 Qualcomm Uplinq Wireless Conference |
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MAXD--the HD audio company that dramatically improves the audio, media quality and voice call on mobile devices -- demonstrated to wireless device manufactures how its integration on Qualcomm mobile device chips would produce what we can only call "compelling user experiences." |
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Massive Media Coverage of Medient Studios (MDNT) Groundbreaking Event |
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Medient Studios brakes ground on America's largest film studio in Effingham Georgia, just outside of Savannah on August 29. The event received widespread television, radio, and print coverage. |
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Medient Studios Breaks Ground on 1600 Acre StudioPlex with ALL of Georgia Attending |
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MDNT has announced they own the ground (20 year lease with buyout), procured the studio production equipment ($40 million deal with Prime Focus Limited), acquired distribution in 150 countries (with acquisition of Atlas International GbmH deal in August)…and secured a major general contractor BL Harbert International LLC from Birmingham, Alabama to build and help finance the project. |
Crailar Technologies brings a new cash crop that will revolutionize the textile industry |
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Crailar Technologies brings a new cash crop that will revolutionize the textile industry. Meet Ken Barker, CEO of Crailar Technologies. (CRLRF) |
Medient Studios, Inc. (MDNT) |
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Medient Studios, Inc. (“Medient”) is intending to build an intellectual property factory that, creates commercial content to a fill vacuum in market demand, produces movies and electronic games a at significantly lower cost than the competition, benefits from substantial tax incentives support, extends its content horizontally to increase revenues with limited additional costs, and is led by a proven and stable management team which has been reinforced by a battery of industry and finance professionals. |
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When to you think the FINAL JOBS Act Regulations will be finished? |
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LAST SURVEY RESULTS Now that Chairman Bernanke has clarified his strategy, when do you think reduction of QE3 starts NOW?
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Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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