By J.P. Dahdah, Founder & CEO of Vantage
As you know, Crowdfunding is creating a lot of ‘buzz’ in the financing world right now. The question is; ‘How can you profit from it?’ Many people are turning a profit from new opportunities for individual investors to pool small amounts of capital into emerging small businesses.
Let’s take a look at who and why:
Small businesses – When the Jumpstart Our Business Startups (JOBS) Act went into effect, it removed the traditional SEC barriers of raising funds for small businesses. Now, private small businesses can actively solicit investors. This source of funding is a crucial benefit because of the tight lending environment in today’s economy. According to the Small Business Association, lack of adequate funding is the number on reason for small business failure. Therefore, access to another, less tightly regulated source of cash is helping small business owners turn the corner toward profitability.
Individual investors – Prior to the JOBS Act, individual investors could not take advantage of the opportunity for equity investments in private small businesses without the appropriate SEC credentials and large sums of money. Both of these barriers to entry have been removed. Individuals can make modest investments or network and pool their resources to collectively own a larger equity stake. To take advantage of the opportunity, more and more are turning to the Self-Directed IRA.
The economy is benefiting from Crowdfunding!
Entrepreneurs and small business owners are critical to a sustained economy. Their access to financing translates to success for many. In addition, their success translates to more jobs and an improved economy.
Have you realized any benefits from a Crowdfunding investment? Please share your experience here with us.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.