After 83 years of being forced to sit on the sidelines, every U.S. citizen is now legally allowed to invest in start-ups.
It doesn’t matter how much you earn…
And it doesn’t matter how much you’re worth…
Thanks to a new law that went live two days ago, now you can invest in promising early-stage companies before Wall Street gets its hands on them.
Are you ready?
Because we’re about to introduce you to three start-ups you can invest in right now.
Before we dive in, let’s look at the historic legal change that’s making this possible.
The change is baked into a new set of laws called “The JOBS Act.”
Simply put, the JOBS Act allows you to invest in private companies and private securities, even if you’re not wealthy.
Its key provisions have been going into effect since 2013…
But Title III, which went live on Monday, lets any U.S. citizen—regardless of their income or net worth—invest in start-ups.
This is called “Equity Crowdfunding.” It’s like a crowdfunding campaign on Kickstarter.com, but instead of getting a T-shirt in exchange for your contribution, you get an actual ownership stake in the company.
Why is this so important?
Because some of these start-ups might become incredibly successful—the next Microsoft, Google, or Facebook—and as an owner, you’ll share in the profits.
Historically, start-up investing has been reserved for wealthy individuals (like Mark Cuban on the TV show, “Shark Tank”) and professional “venture capitalists.”
But now it’s your turn.
Here’s How It Works
Start-up deals will be posted on special websites called “funding platforms.”
These are the websites that play matchmaker between private companies seeking capital, and investors like you who are looking for high returns.
Several platforms have already gone live, and in the next few weeks, we expect a dozen or more to follow. With each platform hosting multiple deals (one platform expects to have twenty deals live this week), we’re talking about a lot of deals.
Minimum investments will be as low as $100.
No matter what your income is, you can invest at least a couple thousand dollars—and if you make at least six figures, you can invest far more.
Now that you know the basics, let’s look at a few start-ups you can invest in right now:
1. MF Fire – App-driven “ultra-clean” wood stove featuring MIT award-winning technology. This is disrupting a $6 billion market, and has been called “a game changer” by Smithsonian Magazine.
MF Fire has re-imagined the wood stove as a clean energy source. It’s 20x cleaner than the new EPA regulations require, 60x cleaner than the average stove, and it produces less smoke than a single cigarette.
2. Treasure State Internet – Fiber-optic Internet that’s 10x cheaper than a traditional provider.
Traditional telecom companies are stuck with infrastructure they laid down in the '80s. They still install “old school” services like landlines—and customers like us are forced to pay these legacy costs. With Treasure State, if all you want is fast Internet, that's what you get.
3. NextRX – Secure digital system for medical marijuana patients.
NextRX provides services and technology around the fast-growing legal marijuana industry. Its solution provides patients with secure digital registration at subscribing dispensaries as well as a “points” system for CRM purposes.
Get Your Strategy for Success
With early-stage investing, you have the potential to make a great deal of money…
But if you don’t know what you’re doing, you could lose a lot of money.
To succeed, you need knowledge about the market, and you need a strategy—
For example, you need to know how much of your overall investment portfolio to allocate toward start-ups; how much to allocate to each company; and most importantly, how to choose which companies to invest in.
That’s the only way you’ll be able to capture the upside potential of this asset class.
More than two years ago, Wayne and I started Crowdability to help investors make sense of this new market—and to protect them.
Simply put, we provide education, research and insights on the private markets. We also make things easier for you—for example, by aggregating deals from all across the web into one place »
More than 100,000 subscribers have already signed up for Crowdability—and with this week’s enactment of Title III, we believe we’re just getting started!