FYI: The recent collapse of newly public tech stocks such as Uber Technologies, Lyft, and Slack Technologies leads to an unavoidable conclusion: The process by which American businesses raise capital is broken. Many of today’s most innovative and fastest-growing companies spend years incubating in the private market, to the benefit of a minority of investors. Because of outdated regulations that dictate how companies can raise funds, Main Street investors are being left out in the cold.
Due to federal securities laws passed in the 1930s, only institutions and wealthy individuals can invest in many of our country’s most exciting young companies. An individual must fall under the “accredited investor” label to participate in most private-market securities offerings. This means having an annual income of at least $200,000 or a personal net worth of more than a million dollars.
Regards,
Ted
https://www.barrons.com/articles/give-main-street-investors-a-piece-of-start-up-companies-51572625115?mod=djem_b_Weekly Feed for Barrons Magazine
