This Law Overturns 80-Year Venture Capitalist Restrictions Allowing Anyone To Invest Like A Shark In Kevin O'Leary-Backed Platform

Investing in giants like Apple Inc. during its early years was once reserved for the financial elite. 

The title accredited investor was the golden ticket, a designation carved out in 1933 legislation to protect against the financial debacles that preceded the Great Depression. This meant that unless you had deep pockets — an annual income of at least $200,000 or a net worth touching $1 million — many doors to promising investment opportunities remained shut. This system shut out countless retail investors while Silicon Valley insiders reaped considerable rewards.

Don’t Miss:

Take Peter Thiel as an example. The co-founder of PayPal Holdings Inc., although not a billionaire in 2004, had both the wealth and Silicon Valley connections to invest early in Facebook as one of the first outside investors. His $500,000 investment ballooned to a massive $1.1 billion. The point isn't just the size of Thiel's investment but the potential returns. Even a modest $500 could have been transformative.

Now, the legislative tide has turned. The Jumpstart Our Business Startups (JOBS) Act, which was signed into law in 2012, aimed to facilitate easier access to capital for small businesses. It allowed everyday Americans to buy equity into startups without the typical stringent requirements of the past, hence the name 'equity crowdfunding.'

Trending: Get equity and front row seats to the startups and small businesses you love —⁠ for as little as $100.

StartEngine stands at the forefront of this revolution. Beyond offering individuals the chance to back promising startups, it also presents an opportunity to invest in StartEngine. The paradigm shift is possible because of equity crowdfunding. By aggregating funds from numerous retail investors, significant seed funding can be generated for startups. The JOBS Act and its updates in the subsequent years, especially 2016 and 2021, have been pivotal in transforming the investment landscape to make it more inclusive.

While the doors to investment have been flung wide open, the advantage of having a strong network, akin to Thiel's, remains invaluable. Recognizing this, StartEngine provides a bridge. It gives retail investors the chance to sync their interests with those of seasoned venture capitalists and industry luminaries, like Howard Marks of Activision Publishing Inc. and Kevin O'Leary, an investor on the iconic TV show "Shark Tank." It’s not just about funds; it’s about merging diverse insights, vast experiences and shared ambition.

Under the endorsement and backing of figures like Kevin O’Leary, also known as Mr. Wonderful, StartEngine's trajectory has been nothing short of remarkable. Having raised over $17 million, StartEngine, co-founded by Marks in 2012, has matured into a solid platform. More than just a nexus for startups and funds, it empowers a vast demographic, allowing them to craft diversified startup portfolios.

For those who have felt sidelined or believed that the world of venture capitalism was out of reach, think again. Now, with as little as $500, anyone can invest in startups. You can start your investment journey on StartEngine and be part of the next wave of venture capitalists to possibly get in on the ground floor of the next Tesla Inc. or Uber Technologies Inc.

Read Next:

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: StartupsStartEngine
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!