Venture Weekly Editor’s Note – 5/23/2016

The Reality of Equity Crowdfunding

This past week, the SEC’s new equity crowdfunding rules enacted under the JOBS Act officially took effect, so as of last Monday, previously non-accredited investors (basically those with less than $1M net worth, excluding their home) can finally start investing directly in startup equity.

In this week’s issue we’ve featured a post from Jason Calacanis about equity crowdfunding.  Jason is certainly one of the most bullish public advocates for the new rules, and it’s easy to understand why, given that he is the leader of one of the largest AngelList syndicates.  However, in his post Jason paints a picture of a world where every mom and pop will be able to share in the wealth created by technological disruption, a vision I believe is overoptimistic.

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-Mike Droesch, Founding Editor