Bringing a revolutionary new product to market always starts with an idea. Although it may take years to come up with the groundbreaking idea, that is often the easy part. The road from a great idea to great success is full of roadblocks. A company must build its infrastructure, refine its product, and most importantly, find the necessary funding to make the project a reality. The sudden and impressive rise of crowdfunding has been responsible for the launch of countless great ideas. Additionally, changes to equity crowdfunding, such as Regulation A+, have allowed non-accredited investors the opportunity to invest in startups, which, According to Equities.com, “…Has Been More Successful Than You Think.”
Start-up companies are important because they drive innovation, but they also are incredibly important to the economy. Start-ups are crucial to job creation, which has a major effect on the economy. According to Forbes, “65% of the net new jobs are created by small businesses, while 1 million jobs are cut each year by large corporations.” In 2015, Forbes predicted that equity crowdfunding, such as Regulation A+, would have a positive impact on the economy.
Regulation A+, which is a product of the 2012 JOBS (Jumpstart Our Business Startups) Act, allows non-accredited investors the opportunity to invest in the next big idea. Regulation A+ benefits both parties involved. For investors, they now have the chance to be involved on the ground floor of a potentially game-changing enterprise. Start-ups, on the other hand, have access to new sources of capital to grow their company and bring their idea to fruition as a result of RegulationA+.
Was Forbes correct when it predicted that Regulation A+ would prove to be successful? According to Equities.com, the answer is a resounding “yes.” Per Equities.com, “Numerous businesses in automotive, medicine, aeronautics, brewing, gaming, and real estate have raised money and engaged their customers, suppliers, employees and business partners using Reg A.”
Start-ups look poised to continue the momentum already generated by the rise of equity crowdfunding. According to Juniper Research, “investments made in technology via crowdfunding platforms are set to increase sevenfold from an estimated $1.1 billion in 2015 to $8.2 billion by 2020.” The future is bright for both startups and investors, thanks to new opportunities such as Regulation A+.
The mission of turning an innovative concept into a pioneering reality is anything but easy. In the past, many ideas stalled due to the lack of funding opportunities. Equity crowdfunding, including Regulation A+, has provided new opportunities for start-ups and investors. Regulation A+ helps entrepreneurs turn the figurative “lightbulbs above their heads” into actual lightbulbs in offices and factories.