10 Apr The New EF Marketplace: Empowering You to Direct Invest in What You Like
Regulation CF / JOBS Act Title III – A legal structure allowing everyone to direct invest
As you may know, Title III of the JOBS Act now allows for non-accredited investors to invest in the type of crowdfunding projects that have been historically restricted to accredited investors.
About a year ago, just after the Title III regulations (a/k/a Regulation CF, for Crowdfunding) became effective, we shared our thoughts on going forward.
We’re just about ready to make good on the promise we made to you—that starting this year, through the Marketplace, everyone will be empowered to invest in what they like—and for you, that means innovative energy technology companies and promising companies that service the oil and gas industry.
SEC Has Increased Investment and Capital Raise Limits
Here are the very basic rules as they pertain to investors, along with the recently adopted amendments by the SEC to help entrepreneurs.
Title III allows non-accredited investors with less than $107,000 income or net worth to invest the greater of 1) $2,200 or 2) 5% of the lesser of their annual income or net worth.
If both an investor’s annual income and net worth are equal to or more than $107,000, the investor may invest 10 percent of the lesser of his or her annual income or net worth.
An entrepreneur can currently raise up to $1,070,000 in a 12-month period.
We’re ready to bring the best energy startup and service company deals to the table
The biggest problem with Title III offerings today is that they are all variations on the same theme. Want to back a possibly trendy new restaurant? How about a new craft brewing company in your area? Surely, you’ve always wanted to invest in crowdfunded movie company or a new app that’s a cross between Zenefits and Tinder? If the answer is yes, you might find plenty of these investment opportunities on other platforms. But, what you won’t find are the most innovative energy tech companies and promising oil and gas service companies.
Where you will find them is the new EF Marketplace.
We’ve been thinking about the right investment structures to allow you to place small bets of nearly any legally-permitted size into these companies, while providing these companies maximum flexibility in seeking later funding rounds at much higher valuations. When they establish a higher valuation, you’ll benefit. Also, should you choose in invest in a cash-flowing service business, you will share in the distributions.
EF Marketplace will not be simply a static platform. Rather, it will diligence entrepreneurs through extensive background and bad actor checks and analyze the company against a laundry list of objective, meaningful criteria relevant to the investment opportunity. Only companies and entrepreneurs that pass the extensive objective diligence process and can present compelling opportunity to energy investors will be able to raise funds on the EF Marketplace.
We’ve worked hard to expand our network in order to attract the best companies. We look forward to announcing more positive news along the way as we get much closer to making EF Marketplace live for business. Our goal is deliver the first investment opportunity to by Q3 2017 or earlier.
If you haven’t already done so, please sign-up to stay informed and be invited to the grand opening of the EF Marketplace.