The Last Oligarchy

By Wayne Mulligan, on Thursday, October 29, 2015

Russia and China are entrenched oligarchies.

In these nations, a small group of powerful citizens controls the vast majority of a country’s resources, and also its political agenda.

Some would argue that Wall Street, too, is an oligarchy:

Certainly, for centuries, a handful of banks and brokers have kept an iron grip on the world’s financial system.

But with innovations such as bitcoin and electronic trading, Wall Street’s grip is losing its strength.

There is, however, one last hold-out—an 80 year old industry where a select few have built vast fortunes, while systematically keeping all others out.

But today, the foundation of this last oligarchy is starting to crumble...

And when it falls to pieces, investors like you will be able to find treasure buried in the rubble.

The Private Oligarchy

As you might recall, Matt and I spent last week at a closed-door meeting in California.

One of the speakers there addressed The Last Oligarchy in great detail—for he was once a part of it.

His name is Jon Medved, and he’s an extraordinarily successful entrepreneur and private market investor.

He’s invested in, or founded, more than a dozen companies that have gone public or been acquired.

The oligarchy that Jon was referring to is the Venture Capital industry.

Jon described an age-old system where a small handful of individuals controlled access to the most highly prized technology investments...

A system where less than one quarter of one percent (that’s 0.25%) of U.S. households have gotten access to an early-stage, private equity deal.

And fewer still gain access to top investments like Facebook, Google and Uber.

But Jon—and now others like him—are trying to tear down these walls...

What’s Destroying The Last Oligarchy?

Jon is an entrepreneur...

He understands how difficult it can be to get access to capital for new business ventures—especially when that access is controlled by such a small group of powerful people.

So in an effort to make it easier for entrepreneurs to get new ideas off the ground, he created a business called OurCrowd...

OurCrowd is what’s known as a “funding platform.” It’s a website that plays matchmaker between investors like you and start-ups looking for capital.

By making it easier for investors and entrepreneurs to find one another, Jon believes he can help dismantle the private equity oligarchy.

And he’s not alone...

There are now hundreds of other funding portals out there—and many of them have dozens, or even hundreds, of deals on them.

These funding portals are already contributing to the demise of The Last Oligarchy...

And now a certain law is aiming to deliver the final blow.

The Laws That Are Changing Everything

In 2012, Congress passed a new set of laws called The JOBS Act.

The JOBS Act was designed to help break the oligarchy around the private equity markets.

Since 1933, only the very wealthiest investors were legally permitted to invest in early-stage, private equity deals.

In fact, only a small group of “insiders” were even allowed to know these investment opportunities existed.

But since the passing of The JOBS Act, that’s all begun to change...

We’re Now 24 Hours From Change

The final provision of The JOBS Act, known as “Title III,” is set to be enacted 24 hours from now.

This provision will allow ALL investors—regardless of their income, net worth, or social circle—to invest in early-stage, private companies.

It will be the defining moment for Jon Medved, for Crowdability—and for you.

It will be the moment when The Last Oligarchy falls.

How will you prepare?

Best Regards,
Wayne Mulligan

Founder
Crowdability.com

Comments

If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Equity Crowdfunding Crowdfunding Ourcrowd Jon Medved Title III The Jobs Act

Share This:
comments powered by Disqus