Evolution doesn’t necessarily mean that we leap through our present in a blink of any eye and soon look back upon our past, which looked like the future just a few years ago. Two totally different ideas targeted to different audiences and appealing to different segments can come to compete with each other and only a few far sighted people can foresee that. Read more http://www.nytimes.com/2015/10/31/business/dealbook/sec-gives-small-investors-access-to-equity-crowdfunding.html?_r=0
To make you understand better I would give you an example of the airline industry. It targets two types of audience:
I P eople who travel from A to B for business activities
II P eople who travel from A to B for non-business/Leisure activities
When video conferencing arrived in the world, little did we know that it would soon bring down the business that airline industry has garnered over the years targeting the people who travel around the world for business. Now they can just connect with each other through their laptop screens and the purpose is served, the need is fulfilled.
Similarly, I think equity crowdfunding is a game changer. It is unlike any other means of crowdfunding we have seen in the past, be it angel investments or venture capital funding. It will not just create more of what the above two bring to the table but it will show us the third dimension. It will give the common man the power to use their money by aiming it to the right opportunity.
SEC Approves Title III of JOBS Act, Equity Crowdfunding with Non-Accredited
With SECs green signal to the title III of the JOBS ACT the game is set to change and we will see its effects in the next 3 to 5 years. It empowers routine investors for the first time in the last eight years to put their capital into new startups (early stage companies) which in turn will route huge sums of resources to the small businesses on the rise. Back in 80s when you bought shares on the stock exchange you had to pay a big fat amount as broking fees, but then came along websites like TD Ameritrade which gave straight access to trading. We are witnessing the same change today. Click here to read more info about Equity Crowdfunding.
There has been a lot happening contemplating this move. The smartest of the lot of institutional investors are already ploughing their money into business portals and platforms which will support equity-based crowdfunding. The institutional investors are not the only ones there are many other big media houses, social media companies and other businesses who are procuring equity mass-funded infrastructure.
If we date back to the age when man molded brass and copper coins that was when the world realized for the first time ever that there can be trade other than barter as well. It marked as one of the defining shifts up the rung for humanity on the pyramid of trade and commerce. Approval to non-accredited investors is set out to do just that.…