The JOBS Act has been a game changer for investor groups as it has opened an entirely new playing field. How you might ask? For the first time in over 80 years, companies can advertise their securities offerings as long as the issuer verifies that each investor is accredited. Below are tips that investors can begin using today to operate safely within the boundaries of the JOBS Act as well as produce more qualified investment relationships.
1. Pooled Investment Vehicles
Offerings such as 506(c) may now bring a company raising capital in front of a larger group of ambitious investors. This will allow for more investors to get involved in a single opportunity. For Lead Investors, you should consider creating a series of pooled investment vehicles. This itself may bring about the opportunity to receive compensation on the carried interest of these pooled vehicles.
2. Maintain JOBS Act Compliance
This is a no-brainer, stay compliant. In order to effectively maintain compliance, you need the right access and tools, such as automated investor accreditation verification, and confidential and secure document tracking. This ensures that companies offering a 506(c) can confidently grant you access to confidential documents without worrying about your accreditation status.
3. Private Offering Events
For 506(b) of Regulation D offerings, companies are not allowed to general solicit, and therefore, as in investor in a 506(b) offering, you are also unable to public announce your fundraising efforts, and ensure the event is private by:
● Never publicly advertising for the event.
● Always send event Invites to only those who you have pre-existing relationships with
● Never disclose any presenting companies in a public portion of your website or externally via a public email campaign.
4. The Right Platform
Whether you have your eye set on a specific company, or you’re just setting foot onto the investment field, you need a great platform. There are a few to choose from, but make sure it includes features that help streamline the investment process, including:
● Discover new investment opportunities through private social networking, reviewing company profiles, and in-person events
● Perform due diligence in a secure environment
● Communicate directly with company CEOs and other investors
● Promote your own investment firm
To get started with using the right platform, click here to signup at no charge.