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5 Key Tech Innovations Impacting the Real Estate Crowdfunding Sector

5 Key Tech Innovations Impacting the Real Estate Crowdfunding Sector

By David Drake The Jumpstart Our Business Startups (JOBS) Act was approved by President Obama  in April 2012 after the bill passed through both houses by convincing margins. One of the major goals of the JOBS Act was to increase job creation and boost economic growth in the U.S. by enabling startup companies to have access to public capital markets. Since it took effect, the JOBS Act significantly disrupted the U.S.’s financial market. It has increased transparency and information disclosure by companies, improved investor protection, and allowed non-accredited investors to invest in small companies. One of the main components of the JOBS Act that have received a lot of attention over the past four years is investment crowdfunding under Title III rules. These rules took effect on May 16, 2016. The rules have greatly impacted the real estate sector by opening up the property market for ordinary investors. Previously, this ... Read More »

SEC Catapults Obama’s JOBS Act and Enables SMEs and Startups to Raise $50 Million through Regulation A+

By David Drake   In a bombshell announcement, the SEC has just released the final form of Regulation A+ rules relating to Title IV of the JOBS Act, under which it has priority over state regulation for Regulation A offerings up to $50 million and stipulates co-ordinated reviews for offerings up to $20 million. Companies on a fast growth trajectory will soon have the ability to raise up to $50 million by directly approaching unaccredited investors much like an IPO, providing a potent alternative to sources of institutional financing such as venture capital. Many people were convinced that Title IV was the most potent game changer in the JOBS Act but had serious concerns about the expense and complications of State securities law which would require securities to be registered in every state in which they are sold. However, in their draft release of the proposed rules in December 2013, ... Read More »

How Key Provisions in the JOBS Act Affect Accredited Investors

jobs-act

In September, key provisions of the JOBS Act of 2012 were finally implemented, changing the landscape for accredited investors, private companies, and small businesses alike. The Act, intended to raise capital from private offerings and IPOS, poses many considerations for the investor that impacts private company investment opportunities as well as alternative investment funds. Verification. The JOBS Act requires that businesses verify that investors are accredited before accepting any money. Historically, self-accreditation was enough, but now documentation must be provided that proves income status, assets, and other pertinent qualifications. Opportunity is being democratized. As the opportunity for entrepreneurship and VC investments are being made available to the non-accredited investor, Title III is set to release a new wave of capital and formalize the process. Vetting. Of course, investing in a company isn’t a guaranteed endeavor for a return on your money. The JOBS Act makes it easier than ever to ... Read More »

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