Two years ago, Congress took a monumental step forward. In a single sweeping act, legislators made it easier for an entrepreneur to raise the money they need to grow their business.
By opening up a massive, and extremely lucrative, portion of the investing world to everyday investors.
I’m talking about the ability to invest in private companies.
Over the past couple of weeks, you’ve heard us talking about the incredible opportunity lurking in private deals. I’m talking about gains like early investors of The Green Organic Dutchman (TSX: TGOD, OTC: TGODF) experienced before it went public. Some folks were able to turn a $10,000 investment into $200,000.
Another example is Tilray Inc. (NASDAQ: TLRY). Private investors could have turned that same grub stake into $379,000.
Or how about the monster $3.2 million early investors could have made investing privately in Aurora (NYSE: ACB).
The fact is, investors get in on the ground floor thanks to private investing, right alongside the founders.
Of course, private investing is a complex field to navigate. It’s also a very risky one, as all of the responsibility is on the individual investor to determine the likelihood of a company’s success. There’s more due diligence needed here than just buying a publicly traded company.
Right here, right now, I’m going to show you how to access all the details on private cannabis investing.
I’m talking about introducing you to building the generational levels of wealth that were once only open to the richest .01%…
The new law that opened up private investing to regular investors was the Jumpstart Our Business Startups Act.
Also known as the JOBS Act, this piece of legislation was signed into law in April of 2012, but it would be four years before it was fully put into action.
Passed to encourage the funding of small businesses and ease the burden of complying with securities regulations, it made it possible for a business to raise tens of millions of capital from anyone – more than enough for most early-stage startups.
It also eliminated the need for expensive registrations and filings with the SEC, drastically reducing the cost of raising capital.
It even made it possible for very early-stage companies to raise desperately needed seed capital at almost no cost. These changes blasted open the door to the $2.7 trillion in capital raised privately each year – far exceeding the amount raised public markets.
So now anyone with money to invest can claim their part of the massive value created by a company long before it goes public.
The JOBS Act made this possible by seriously overhauling one regulation and adding a completely new one to the mix.
Regulations Create More Opportunities for Cannabis Investors
The first big change was an overhaul of Regulation A – now called Reg A+. The changes allowed companies to raise up to $50 million from anyone.
No longer would investors have to make hundreds of thousands of dollars per year or have millions in investments. Literally, anyone could invest.
With these changes, a company also didn’t have to spend a lot of money or wait a long time to raise money under Reg A+. The forms it filled out were much simpler to complete and the cost of filing with the SEC were modest.
But there was another big change – one aimed squarely at helping startups get out of the garage.
This was the addition of Title III of the Act, which introduced a completely new regulation. Title III brought the crowdfunding phenomenon fully into the light of the law with the appropriately named Regulation Crowdfunding.
Known as Reg CF, for almost no expense and with very little paperwork (basically a one-page notice to the SEC), a company can list with an online funding portal and raise just over $1 million. While not enough for a more mature company, this is more than enough money for a brand new start-up looking for the seed capital to get started.
Thanks to all the new regulations, it is now possible for start-ups to raise money from anyone and for retail investors to get in on ground-floor opportunities.
But though it’s now possible for anyone to invest in startups and provide precious capital to the next Canopy Growth Corp. (NYSE: CGC), doing so is by no means simple.
The Ground Floor to a Cure
The first company I brought to the Cannabis Venture Syndicate is building custom cannabis-based compounds to be used in medications. One of these could actually cure multiple sclerosis, and the addressable market for just a couple of the drugs the company has patented could drive the value of this firm north of $50 billion.
The cure is possible because of a tweak the company’s researchers made to the CBD molecule. Think of it as CBD 2.0.
Syndicate members investing privately in this company now are getting in at $100 million valuation, and if just two of the 25 patented cannabinoid molecules are successful in providing treatment, the 500-fold trip to $50 billion could mint a few millionaires.
But the private investment opportunities don’t stop there…
In total, I’ll be bringing up to six deals to members of the Cannabis Venture Syndicate over the next year.
So, if you want get in at the early stages of promising cannabis startups helping to create $1 trillion in value over the next few years, it’s time you finally gave yourself the same opportunity invest like the 0.01%.