SEC lifts the ban. Time to re-think your portfolio?
Fundology is an investment network that prioritizes efficiency by helping investors, business owners, dealmakers and service providers network for enhanced deal flow, restoring relevance in deal discovery and simplifying traditional workflows. Deals found on Fundology include: private company stock, M&A, funds and debt.
The very point of being an accredited investor is that there is a whole world of alternative investment opportunities available to you that are not available to non-accredited investors.
On March 6, 2013, NASDAQ OMX Group, Inc. announced a joint venture with SharesPost, Inc. to launch a new secondary market trading platform for the purchase and sale of private company securities. The new marketplace, to be called The Nasdaq Private Market (NPM,) will be a private market for resales of restricted securities, with the main objective of providing increased liquidity for early investors, founders, and employees of private companies by enabling the efficient buying and selling of private company shares. Subject to regulatory approval, NPM is slated to become operational later in 2013. The new private trading platform presents an opportunity for accredited investors who have held restricted securities of a private company for at least one year to exit their investments.
FundersClub is a new type of venture capital platform, built around a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds – which then fund pre-screened, private companies. AIMkts spoke with CEO Alex Mittal about all things FundersClub to get some insight into why they’re industry wave makers right out of the gate, among other things.
CircleUp is an equity crowdfunding platform, presently open only to accredited investors, which primarily features existing U.S. consumer products companies. Ryan Caldbeck, CircleUp’s CEO spoke with AIMkts about raising capital, their focus retail and consumer goods and CircleUp’s presence as an investment platform.
Whereas crowdfunding can be thought of as a primary market, a pre-IPO market is a secondary market. Stated another way, crowdfunding involves the sale of restricted securities by the issuer of such securities whereas a pre-IPO market is one where a holder of restricted securities can sell them to a third party.
U.S. farm real estate retained its value over the decade 2000 to 2010, despite the housing market’s tumble [see charts below]. In fact, the average value of land and buildings on farms has steadily increased since the late 1980s, with the sole exception of 2009.
According to U.S. securities law, only accredited investors may invest in private equity, venture capital, hedge funds, and private placements. Regulation D, Rule 501 of the Securities Act of 1933 states the accredited investor definition as: (a) an individual (or married couple) whose (joint) net worth exceeds $1 million, excluding the value of the primary residence; or
Individuals invest in tangible assets (also called hard assets) because they are generally considered more stable in value than most commonly traded sovereign currencies and securities. When the world economy falters, many investors move into tangible assets, such as gold, because they are perceived as safe havens during difficult economic times.