Non-accredited investors are still waiting for the chance to get involved with equity crowdfunding, but not the accredit investor. InvestX Capital Ltd has made sure of that. This crowdfunding platform, which was made possible by the JOBS Act in 2012, has offices in Vancouver and Dallas and is taking private equity deals and venture funds to new levels.
The backbone of their model could be best described as “sub-crowdfunding.” InvestX recruits some of the bigger names in the investing world to participate in their opportunities. These entities then piece of smaller parts of the investment to their own clientele. It’s a tried and true model. The Blackstone Group is already doing it on a smaller than normal scale for accredited investors.
Smaller is relative, however, since the minimum investment entry into Blackstone is $250,000. For accredited investors getting involved with InvestX, the minimum is just $2,500. That’s almost low enough to even get non-accredited investors involved once they’re allowed to do so when the laws and regulations are updated.
What Makes InvestX Different?
It’s the structure of the platform itself that is different for InvestX. Most of these co-funding ventures require investors to get involved with every deal that comes along. InvestX allows their investors to take the deals they like and skip the ones they hate. The terms of each deal are still the same despite the lower entries.
Their debut programs to raise equity have been going along, but the one issue that has yet to be addressed is what will happen if InvestX falls short of their goals. CEO Marcus New realizes that one day this will be a reality. The risks of private equity are high. Investors have to hold onto their shares for years and if an investment tanks, the cash disappears.
Right now there isn’t a way for investors in the platform to sell their share before divestment. Changing that would definitely enhance the influence that InvestX has in the market right now.
Equity crowdfunding is going to change the way the business world operates. It’s only a matter of time. InvestX looks to become one of the leaders that takes us all there.