Today (June 19th) for the first time ordinary Americans are going to be able to invest in SME’s before the IPO. Ryan Feit, CEO and co-founder of SeedInvest took this message to CNBC’s MadMoney to discuss this regulatory change.
Feit pounds the theme that until today only the wealthiest 2% of the population have been allowed to invest in pre-IPO companies as they were “Accredited Investors”. With Title IV of the JOBS Act, otherwise known as Regulation A+, anyone may invest in early stage companies using this exemption. Â Acknowledging that early stage investing is risky, Feit emphasizes the importance of portfolio diversification. But as they depict on their site, a diversified portfolio of early stage companies may deliver outsized returns over the long run.
Watch the entire segment below.