Analysts may very well look back at the year 2015 and see how the investment landscape transformed. At the very least, it has a high likelihood of being the year that investable assets expanded via equity crowdfunding platforms to levels that signify a “no turning back” point for the sector. This rise in equity crowdfunding has led to mass amounts of angel investors to connect quickly and more efficiently with potential investments in the startup sector. Previous hurdles that created a long vetting process for both sides became streamlined thanks to platforms like AngelList, SeedInvest, OurCrowd and several others.
As you probably know, the Jumpstart Our Business Startups Act (JOBS Act) of 2012 blew the doors open for this era. With the act passing, FinTech began to revolutionize investing and financial services. While taking slower than some expected to gain traction, the movement took off and the results started pouring in. By 2014, startups were averaging 2.2 new hires post-crowdfunding. New jobs and new equity flourished under the regulations.
Irvin Goldman is the President of Validity Holdings. Irvin is is an experienced financial services executive, entrepreneur and investor currently based in New Jersey.