Get Ready... For Title III

By Wayne Mulligan, on Thursday, October 16, 2014

They say good things come to those who wait...

Do we get a bonus for waiting 82 years?

For the first time since 1933, all U.S. citizens will be able to invest in the most profitable market in history.

It doesn’t matter who you are.

It doesn’t matter who you know.

And it doesn’t matter what your net worth or income is.

The market I’m talking about is the market for early-stage investments...

The private stock market.

And today we're going to tell you when the private market will finally open its doors.

Why You Should Care

As long-time Crowdability readers know, early-stage investors have been earning staggering returns for decades.

The 5 most profitable investments in history were all made in the private markets.

Folks that got in early on companies like Coke, Microsoft, and Google turned small investments into fortunes.

But even forgetting about “homeruns” for a minute, on average, early-stage investors earn 27% annual returns – in good years and bad.

And for the first time in your life, you’ll now have the chance to do the same thing.

Let’s take a quick look at some of the critical events from Congress and the SEC that have gotten us where we are today – and then look at the timeline for the future.

The Dates

So let’s go back in time a bit...

1. September 23, 2013, last fall, was a big day.

That’s when Title II of the JOBS Act went live.

Title II allows private companies to advertise that they’re accepting new angel investors.  A company can now put a billboard up in Times Square if it wanted to.

2. A month later, on October 23, 2013, the SEC issued their proposal on Title III.

Title III is the long-awaited “crowdfunding” component to the JOBS Act.

This is what allows ALL citizens, regardless of their income or net worth, to invest small amounts of capital into private companies and receive equity in exchange.

A 90-day commenting period followed – this is where outside experts and regulators add their two cents.

Then the SEC started its deep review of all these comments.

3. This past summer, on August 8, 2014, members of a bi-partisan house committee called the “Committee on Innovation and Technology” sent a letter to the SEC Chair, Mary Jo White.

In the letter, the committee gave the green light on Title III...

They told Mary Jo White in no uncertain terms that they were ready for immediate finalization of Title III Rules.

And that leads to where we are now...

The Home Stretch

The information we’re about to go over was revealed to 1,237 Crowdability readers just last night.  We hosted our first ever, live training event: The 27% Blueprint.

In case you missed it, here’s what we covered...

After several recent meetings we’ve had with our industry contacts, we believe we’re finally in the home stretch – the private stock market is on the verge of opening its doors.

Earlier this week, we spoke with Ron Miller, the founder of StartEngine and one of the most vocal and influential advocates of Title III crowdfunding.

Ron’s started and “exited” from four different companies, including taking one of them public on the Nasdaq – so he knows start-ups, and he’s well-known by the decision-makers at the SEC.

According to Ron, there’s a 90% chance that Title III will go into effect in Q1 2015...

And there’s even a possibility it will go into effect this year...

Remember: that’s the date that all citizens will be able to invest in the private market – regardless of their income or net worth.

Evidently, Chair White wants Title III done “in the near term.”

The Bottom Line

We don’t know if we’re in the 8th inning, the 9th, or if we’re going to end up going into extra innings.

But one thing is clear: we’re in the home stretch of this game.

And that means that it’s time for you to get ready.

If you put your money into stocks and bonds like the rest of middle-class America, you’re going to crawl along and make middle-class returns...

You’ll be lucky to make 8% a year.

If you actually want to become WEALTHY, you need to invest your money like the wealthy do – and now you’ll be able to.

If you have any questions about the JOBS Act, Title III or the Private Stock Market, feel free to drop us a line at: [email protected].

Happy Investing.

Best Regards,


Founder
Crowdability.com

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Tags: Equity crowdfunding Jobs act Law Ron miller Sec Title 3 Title iii

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