Mad Money Talks Crowdfunding
For those who are unfamiliar, CNBC's Mad Money is a television program that takes viewers inside the mind of Jim Cramer, one of Wall Street's most respected and successful money managers. Cramer uses his quirky style to discuss investing and ways to ultimately help you make money.
This past Thursday, Cramer interviewed SeedInvest's CEO and Co-Founder, Ryan Feit and the two discussed a variety of topics such as:
- Title IV of the JOBS Act which went into effect on June 19, 2015.
- The laws set in place by the SEC for investor protection.
- How the new laws affect the SeedInvest platform.
- Tips for newcomers getting involved in the asset class.
- Two of the top startup companies who have done a capital raise thru SeedInvest..
Title IV of the JOBS Act & Investor Protection
During the episode, Cramer talked to Feit about what Title IV of the JOBS Act means for startups looking to access more capital to expand and grow their businesses. Feit explained some of the changes to the rules that went into effect on June 19, 2015. Here is a short breakdown of the new rules:
- Everyone is Eligible to Invest -- Investing is no longer limited to accredited investors. However, Tier II investors will be subject to investment limitations described below.
- Investment Limits -- Tier 1: No limit; Tier 2: For each Regulation A+ offering, unaccredited investors will be allowed to invest up to 10% of their net income, or 10% of their net worth (whichever is greater).
- Self-Certifiable Net Income & Net Worth -- Investors can self-certify their net income or net worth, meaning that issuers won’t have to go through the onerous documentation and proof of verification process required by Rule 506c.
- General Solicitation and Advertising -- no prohibition
- Transferability -- Reg A+ securities will be freely transferable, meaning that secondary markets are likely to spring up. Issuers may choose to set their own contractual limits to transferability.
The changes made to Tier 1 and Tier 2 of Regulation A+ will continue to be monitored by the SEC in conjunction with the North American Securities Administrators Association (NASAA) over the next 5 years to determine if they are effectively operating to help small businesses while still maintaining satisfactory levels of protection for investors.
Related Webinar: Watch Legal 2.0 - Patch of Land's New Offering Structure Improves Investor Protection
Successful SeedInvest Campaigns
Mad Money's Jim Cramer asked Ryan Feit which companies we might have heard of who had successful SeedInvest campaigns. Feit responded by announcing two companies: Patch of Land and DietBet. Feit mentioned how Patch of Land recently raised a $24 Million round and the fast-growing pace we've experienced over the past 6 months since our SeedInvest Campaign. We want to thank Ryan Feit for recognizing Patch of Land's success, as well as Jim Cramer and CNBC's Mad Money for putting the spotlight on crowdfunding and the peer to peer lending marketplace. For more information and statistics about the world of crowdfunding, take a look at the CNBC Crowdfinance 50 Index and see how this new industry's economic activity is being tracked.
If you want to learn more about crowdfunding, take a look at some of the most commonly asked questions we receive about real estate crowdfunding on a daily basis and find out why so many people are crowdfunding real estate projects across the country with Patch of Land.
If you still want to know how Patch of Land works for professional real estate developers and accredited investors, please visit Patch of Land’s FAQ section and learn more today.
