Those who have read this blog before have certainly heard of Title III of the Jobs Act. The revolutionary changes made within the past year were covered extensively by anyone and everyone interested in Crowdfunding. Being that we have touted the positives, and even criticized some of the short comings, of the recent changes there and back again, it’s relevant to point out that there are two other important Titles of the Jobs Act that allow us to Crowdfund as we know and love today: Title II and Title IV.
Title II allows investors to get in on deals that they otherwise would have been barred from in the past. How, you might ask? Prior to Tittle II, you had to have an established relationship with the person offering the deal in order to invest with them; as you can imagine this was not only extremely limiting but also created a huge time sink in developing and maintaining contacts that did not always lead to a return. Now, so long as you’re accredited, you can invest in whatever opportunity you find, wherever you find it.
Title IV on the other hand is what allows companies to a mini-IPO (initial public offering) via Regulation A+. A mini-IPO essentially makes the investment offer to the general public (which was previously considered solicitation and was not allowed) through certain platforms online. This is groundbreaking, because prior to this, the regulations on where, how and who you could make your investment offer to were rather limiting.