In one of its last moves before today’s election, the Securities and Exchange Commission (SEC) made a series of revolutionary changes that will completely transform startup investing for years to come.
I really can’t overstate just how exciting this is.
We’re living in one of the strangest and most uncertain periods our country has ever seen.
But one thing’s for sure…
No matter what happens tonight – or over the next few months and years, for that matter – we’re entering one of the best times in history to be a startup investor.
You’re about to have even more control over your investment assets.
Currently, non-accredited investors are limited in the amount they can invest each year.
That limit is calculated based on either 10% of their income or their net worth… whichever amount is smaller.
Ultimately, these restrictions mean that investors have less control over where they can spend their money… and the SEC is changing that.
In January, investors will be able to base their investment limits on the higher of their net worth or income.
Folks whose net worth and income differ greatly will no longer be bound to puny investment maximums and will be able to choose where more of their money goes each year.
And that’s just for non-accredited investors. Accredited investors will have zero restrictions on the amount they can invest in Reg. CF campaigns at all.
Crowdfunding is about to become much less risky for startups.
Crowdfunding can be risky business for companies trying to get started.
Right now, it’s illegal for companies launching a Reg. CF raise to advertise their offering in any way before it goes live. They technically can’t even tell their friends and family it’s happening… meaning really, no one will know too much about their product until their raise is already up and running.
But it takes a whole lot of time and money to get a raise off the ground. Without the opportunity to assess investor interest beforehand, it’s possible these companies will waste precious resources in the process.
With the new SEC regulations, that’s about to change.
Starting in January, companies launching Reg. CF raises will be allowed to “test the waters” before going live to figure out if their product or service will actually stick on the market.
And if the product/market fit isn’t there, these companies can head straight back to the drawing board without having wasted their time.
In other words, crowdfunding is about to become less risky… and way more attractive for more startups.
And here’s the kicker:
We’re about to see even bigger companies enter the crowdfunding scene.
The SEC just increased the maximum Reg. CF raise limit for startups from $1.07 million to a whopping $5 million.
This is a massive deal. The original $1.07 million is a number that, quite frankly, just isn’t enough for most companies to fund all of the development and growth they need to accomplish in a year’s time.
With the opportunity to raise up to $5 million, more and more founding teams will now begin to see Reg. CF raises as a viable option for funding their ventures.
They can use crowdfunding to build up their company’s runway for the long-term… and market their raises to an even wider group of eager potential investors along the way.
It’s truly a win-win, for companies and their cap tables alike.
And I anticipate that with this change, we’re about to see even more mature startups hop on the Reg. CF train… not just those in their earliest stages.
Even before joining Angels & Entrepreneurs as an advisory board member, I was constantly on the lookout for these types of companies that would completely revolutionize the crowdfunding scene for good.
And today, I’m excited to share four of my top picks with you.
These are world-class companies that I sourced straight from the realm of elite venture capital. Each one of these companies has decided to open up their raises to everyday folks who, I believe, deserve the same shot at financial success as anyone in the upper echelons of private equity.
I’ve invested a stake of my own in each one, and I’m so excited to share the same opportunity with you today.
I highly suggest you learn how to claim your stake right now… even before the SEC’s latest changes take effect.
See, once that happens, we could see a massive wave of new investors flooding the space – and I want to make sure you can get there first.
There’s really been no better time to take advantage of these deal recommendations that come straight from the independent research team, and you’ll have a way better shot at massive returns if you do so right now.
Neil Patel is a successful entrepreneur and investor who has been active in the startup scene for nearly two decades. Born in London, England, he moved with his family to Orange County, California when he was two years old, where he was surrounded by entrepreneurs and innovators from an early age. Neil is the founder of several companies, including Crazy Egg, Hello Bar, and Quicksprout – companies that established Neil as one of the world’s leading digital marketers. But Neil spends more time these days on the other side of the table – as an angel investor. He has made some unbelievable returns backing early-stage startups. Now, he’s here to teach you to do the same. Neil launched the Angels & Entrepreneurs Network to pull back the curtain on the world of “pre-IPO” investment, because he believes everyone should have access to the same playing field – not just society’s high and mighty.
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