Here’s a new way to get funding for your business!

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Breaking news in Business today!
-Equity Crowdfunding-
The Title III of the JOBS Act has opened the door anyone regardless of your income to invest in any startup you like, which will allow entrepreneurs to raise capital to start their business in a short amount of time through crowd funding.

In short, you invest money in the business of your choosing and in return you get equity in the company. Sounds like another stream of income to me!

With that being said, entrepreneurs no longer need to take out a loan to start their business. Through crowdfunding they will have the ability to raise the money a lot faster. Before today, only accredited investors (one with a net worth of $1 million or annual income of $200,000+) could take an equity stake in a private company through crowdfunding.

Here are the Facts:
💖 Investors making less than $100,000 per yr
can only invest $2,000 or 5% of your
annual income.
💖 Investors making more than $100,000 but
less than $200,000 per yr can only
invest up to 10% of their annual income.
Pros:
▪Entrepreneurs can raise more money in a
shorter amount of time.
▪️The average joe can invest with as little as
$100
▪️More businesses = more jobs which yield a
better economy
▪️No loans or saving up for years

Cons
▪️New investors will be more optimistic than
realistic about how the investment will
perform, says Brandon Jenkins
▪️Most disciplined investors have high
expectations so staying on top of your game
isn’t an option. Know your business!
▪️When you invest in a startup, you cannot
pull your cash out. You may have to wait
3-10 yrs before there is a liquidity event.
▪️ Investing is a gamble, you may get a
return…you may not. You have to be ok with
that.
Entrepreneurs- you’re going to have to know
your numbers inside and out
speak intelligently about your
business.
Also your projections need to
be as accurate as possible.
Remember the investor has
only one concern, “when am I
gonna get my money back?”
-Kevin O’Leary. As I said
earlier, disciplined investors tend
have high expectations which
can be a bit challenging to a new
entrepreneur. If you decide to
participate in this program, I
suggest you to make sure your
business plan is as detailed as
possible. Last but not least, be
prepared to work harder than
ever because now you
have others money on the line.
Investors- New investors make sure you
diversify your portfolio. Don’t tie up
all of your money in one investment,
spread it out. This is one of the
biggest concerns that some
experienced investors are having for
the newbies.
Do your due diligence before you
give your investment.

This is very exciting! There’s a lot of skepticism and concerns especially for the untrained investor. All I suggest is you read up on this bill and study the world of investing before you start putting your money out there.

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