The Gov't Wants You To Invest in Startups

By Matthew Milner, on Wednesday, September 2, 2020

Did you see the news last week?

The U.S. government gave investors like you a kick in the pants.

“Get out there and invest in startups!” it seemed to be saying. “Make some money!”

Today I’ll explain the news…

Then I’ll show you how it could potentially help you pocket a windfall — even during the Covid-19 downturn.

Sorry, Mom and Pop

For 83 years, only wealthy “accredited” investors were legally allowed to invest in startups.

In order to be considered accredited, you needed a net worth of at least $1 million, or annual income of at least $200k ($300k with your spouse).

The history behind these laws goes back to 1933…

After the Great Depression, mom and pop investors were being taken advantage of through “get rich quick” schemes, many of which involved unregulated private investments.

So the government passed a law that made private investing accessible only to wealthy people — people who, theoretically anyway, could afford to take financial risks.

Unfortunately, instead of protecting you, this law ended up hurting you…

55% Returns

You see, over time, stock market investors are lucky to eke out average annual gains of 6%.

But investors in private startups have been earning about 10x that much:

According to Cambridge Associates — an investment firm with clients like Bill Gates and the Rockefeller Foundation — over the last 25 years, early-stage startup investing has generated average annual returns of 55% per year.

At 55%, in 20 years, a tiny $500 investment turns into more than $3.2 million.

Such returns could change the lives of investors like you. The government can’t deny that.

So, to make a long story short, after 83 years, it finally changed the laws…

Knocking Down 83-Year-Old Walls

In 2016, Congress passed a set of laws known as The JOBS Act.

Ever since then, even if you weren’t accredited, you could finally invest in startups — and you could finally get access to the most profitable asset class in history.

But unless you were a reader of a newsletter like Crowdability (seriously, you should pat yourself on the back right now), you still didn’t know the laws had changed!

The thing is, the world is a mess right now because of Covid-19…

30 million Americans are unemployed. The stock market is poised for a crash. And meanwhile, that new stimulus plan you’ve been reading about all summer is nowhere in sight.

Perhaps that helps explain why, last week, the government decided to go even further than The JOBS Act…

No More Limitations!

To encourage more investors like you to invest in startups…

The government finally changed the definition of an Accredited Investor.

For example, if you’re a financial professional who holds certain securities licenses, now you’re considered accredited, regardless of your net worth or income.

And as reported in The Wall Street Journal last week, you might soon be able to earn accredited status simply by educating yourself about startup investing.

Why does this matter?

Well, even with The JOBS Act, non-accredited investors were still limited with respect to the deals they could invest in, and how much money they could invest into each deal.

But with this latest change, those limitations are starting to go away entirely.

The Government Wants You To Invest in Startups

If you ask me, it’s very rare that the government gets something right.

But in this case, praise is due.

The government recognized that startup investing could change your financial future, and it actually did something about it.

Now, through The JOBS Act, and through redefining what it means to be an accredited investor, it’s showing you that it wants you to invest in startups.

Ready to get started? Here’s how.

Easy Way To Get Started

Wayne and I started Crowdability for a simple reason:

To help investors like you educate yourself about startup investing…

And to help you profit from it.

To ensure we’re teaching you everything you need to be successful, we built a panel of professional venture capitalists and angel investors.

And over the course of many years, input from these professionals has helped us build our education and research infrastructure.

Through this education and research, we believe we can help investors like you avoid making costly mistakes — and provide you with the highest chances of financial success.

To access some of the free educational resources we’ve created for you, simply click here »

Happy Investing!

Best Regards,
Matthew Milner
Matthew Milner
Founder
Crowdability.com

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