Stamford, CT (August 20, 2013): I-Bankers Direct today announced that it has released a new guide on private equity investing. The guide, entitled “5½ reasons why individuals should invest in private companies—and how to do it”, is available for download at www.ibankers.com.
Fueled by the JOBS Act and the development of crowdfunding platforms for private equities, interest in alternative investments has been steadily mounting. A tectonic shift is now underway in the manner in which small companies raise capital, and the new guide from I-Bankers Direct provides reasons why qualified investors should not overlook opportunities in this area. The guide discusses recent federal legislation, describes how investors can now access online deal flow typically seen by institutions and ultra-high-net-worth investors, and reviews how private equities can provide additional portfolio diversification.
Per federal securities laws, any individual who meets one of the requirements listed below is considered an accredited investor and is therefore able to invest in private equities:
A person with income exceeding $200,000 in each of the two most recent years; or
Joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
a person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million excluding the value of the primary residence of such person.
Investors who are part of the select group that is fortunate enough to meet the above accreditation criteria have the credentials, using equity-focused online crowdfunding platforms, to purchase shares in private, early-stage companies—a type of investment opportunity traditionally made available to ultra-high-net-worth individuals and large institutional investors.
I-Bankers Direct’s guide makes it clear that investing in young companies can involve high risk. However, the guide points out that many companies in this category fail precisely because they are not adequately capitalized, and suggests that interested investors focus on private equity investments in growth-stage businesses—businesses that have already matured to the point of establishing revenues, brand recognition or market positioning—rather than in start-ups, which can offer higher risk. Additionally, the guide includes commentary on the impact of new SEC Rule 506(c) under Regulation D. Under Rule 506(c), the prohibition on advertising—or general solicitation—for certain private securities offerings is no longer applicable.
A full copy of the I-Bankers Direct guide is available for download on www.ibankers.com.
About I-Bankers Direct
With 24/7 online access to video presentations, offering documents, management conference calls, company slide decks and other decision-making support, the I-Bankers Direct platform provides accredited individual investors with the ability to evaluate and invest in promising business opportunities, based on their own schedule and from any Internet-connected device.
Headquartered in Stamford, CT, I-Bankers Direct maintains offices in New York, Palo Alto, and Lugano, Switzerland. Interested accredited investors are invited to visit www.ibankers.com to register as users of the site. Registration is free, quick, and permits investors to receive regular updates regarding investment opportunities as they become available on the platform. Growth-stage companies with an interest in raising capital via the I-Bankers Direct platform can click here to submit a proposal for consideration.
[Source: I-Bankers Direct]