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. 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.