Good Afternoon,
It’s a been a while since I have posted. I do apologize for the delays.
I have been working on securing a partnership with another trading firm, increasing our angel investment deal flow, legal documents for setting up a venture capitalist firm, developing our private discord, and making some significant updates on our private deal flow app!
With that out of the way, I just wanted to give you guys an update straight from the Securities and Exchange Commission!
These rules will officially roll out on January 1, 2021, and that means that next year is going be the best year in history to invest in startups!
I would highly recommend you pay attention and educate yourself on these three rules!
Rule #1 The maximum raise amount for Regulation CF deals has increased from $1.07 million to $5 million.
Since the JOBS act in 2016, the upper limit of crowdfunding was capped at $1,070,000 for crowdfunding deals. This may seem like a lot of money, but most startups need well over this amount to get launched. The SEC changed the cap of this amount to $5,000,000.
There are three great things about this change!
- Startups can now raise more money for their runway
- The opportunities for great deals will have longer raises for investors to get in (you)
- Startups may choose crowdfunding over venture capitalists
Rule #2 The amount you’re allowed to invest each year has increased.
Currently, the investment limits are broken down into accredited and non-accredited investors.
Since the JOBS act in 2016, you were only allowed to invest up to 5% of the less value of your net worth or annual income as a non-accredited investor.
This has changed quite a lot. Now you are able to invest up 10% of the greater value of your net worth or annual income as a non-accredited investor if your income exceeds $107,000.
Accredited investors now have no limit to how much they can invest in Regulation Crowdfunds.
Rule #3 Startups raising via Reg. CF are now allowed to “test the waters.”
Currently, startups planning to do crowdfunding offerings are no allowed to pre-advertise their raise. In fact, they were not legally able to disclose anything to anyone. This made it really hard to see if there was a potential group of investors who were interested in their products.
Only Regulation A+ startups were allowed to “test the waters”.
This means that 3 great things will be changing for these startups in 2021.
- Regulation CF will be a lot more attractive for startups
- There will be a substantial increase in the number and quality of startups in 2021
- The Options and Traders Network will be looking to take on new associates for our due diligence program.
DEAL FLOW and the Startup Investment world is about to EXPLODE!
Stay tuned, learn more, ask questions. Become a 6 digit survivor. Check out the live stream.
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Disclaimer:
I want to point out, I am not a registered investment adviser or broker/dealer. I am a highly profitable options trader who has been successful time after time, and I have changed the lives of many people through the art of trading on the stock market.
– Ken