Would you like to see the high rate on return that can be made from investing in startups? Are you an Accredited Investor? If you answered “yes” to the first question and “no” to the second, then you are in the same boat as the majority of people around the world. We have all heard stories of the huge profits that can be made in the best startups but until recently, only the super-wealthy had the opportunity to invest.
That has all changed now, thanks to the creation of the “Wide” Title III, Equity Crowd Funding and the new Regulation A+ classification of investments. What was once the purview of the wealthy Accredited Investor is now available to the average “Main Street" Investor too.
If you want to know how you, the average Joe, can take advantage of these new opportunities, read on.
Know Your Investment
As mentioned above, there are two new classes of for investors to consider. These are the Regulation A+ class and the Title III class. The difference in the two is the level of risk and size of the projected companies involved in the investment.
Title III Companies
Title III, Equity Crowdfunding startup companies are generally smaller firms that need anywhere from less than $100,000 to $1 million dollars in seed money. They may offer the greatest opportunity for substantial gains, but may also offer the largest risk as they have the most to do to become successful.
Regulation A+ Companies
These companies are normally looking to raise larger sums of money -- up to $75 million in a 12-month span from investors. These are considered less risky because they are usually lead by experienced business people and are required to meet stringent reporting criteria put in place by the SEC.
Becoming a Startup Investor
Now that you have a basic understanding of the types of companies that you will have the opportunity to invest in, let’s look at the easiest way for you to get started and hopefully get the results you are looking for.
The hard way to get started investing in startups is to search through directories, research each individual company and try to pick a winner. If your business background is sophisticated enough, you may want to go this route, but there are other ways that are much easier. Title III and Title II equity Crowdfuding sites are a good place to look, as are Regulation A+ funding platforms such as Manhattan Street Capital.
Manhattan Street Capital does not recommend any particular investments. Do your own due diligence and invest with great care. Consult professional financial advisors before risking your money.
Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid sized companies to raise capital using Regulation A+. Turner has played a key role in building successful companies including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves and eASIC.
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