The Zacks Group announced this week the launch of ZacksInvest.com, an equity crowdfunding platform that provides investors with access to select privately held, early and mid-stage companies seeking growth capital. This new website launches just a couple of months after the SEC approve of Title III of the JOBS Act.
“This is possibly the biggest change to new capital formation in the U.S. in 80 years and it’s an important step to modernizing investment and wealth creation for all Americans with the added bonus of empowering entrepreneurs and small companies to compete for investor interest.”
Zacks has been providing investors with research and information on the public markets for over 30 years. Zacks’ decision to expand into providing access to private market investments is an important step for the Zacks Group and their 1.8M followers.
Daniel Mulcahy, the managing director of ZacksInvest (a division of LBMZ Securities, Inc. a registered Broker Dealer and member FINRA/SIPC), points outs that the private market look a bit like the Wild West right now:
“There has been an explosion of growth in the private markets and Zacks wanted to provide investors with a trusted resource that is not simply a Craigslist of good ideas seeking money. The investments listed on our site are subject to careful selection and rigorous due diligence. We look for viable companies with experienced management, established corporate governance, defined revenue models, marketable products and services etc.We look for reasonable investment opportunities and try to shy away from new venture roulette.”
ZacksInvest will have the ability to accommodate three key investors – institutional, accredited, and retail. Initially, ZacksInvest will offer Regulation D (506c) investments that are only available to accredited investors and Reg A+ IPOs that any investor can participate in.However, in the near future as crowdfunding and ZacksInvest both continue to expand, and contingent on receiving certain regulatory approvals, we intend to provide investors access to vetted Title III Crowdfunding investments (Federal) and Rule 147 Intrastate Crowdfunding (State Specific).
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