Scott Jordan, Founder of HealthiosXchange (“H/X”), the equity-based crowdfunding portal of Healthios, has published a White Paper—“Self-Directed IRAs, Meet Crowdfunding!”— which explores how self-directed IRA investors may use equity crowdfunding to achieve attractive returns in private equity.
Jordan noted, “Equity crowdfunding, also called ‘portals’, which leverages the Internet and Social Media to raise smaller amounts of capital per investor from larger groups of investors, is perfectly equipped to assist self-directed IRA investors whose goals are to achieve attractive returns in private equity.”
He then added, “Investors can leverage equity crowdfunding to invest consistently and easily diversify private equity portfolios given investment minimums as low as $5,000 per company per investor. So instead of investing $35,000 in a company, which is often the minimum required by Angel Groups, why not put $5,000 into one, or seven, companies? The importance of spreading investment capital among multiple companies is key, given that 50% of emerging companies fail, 20% return investors’ money, and one company will hopefully generate a 10x return on investment.”
HealthiosXchange is an equity-based crowdfunding portal and broker/dealer that raises funds under Rule 506 (b) and (c). A member-only site, HealthiosXchange offers private placements to accredited investors. Some 2200 accredited investors, emerging growth companies, investment professionals, and strategic buyers are registered members of HealthiosXchange.