Money Radio’s popular “Financial Review with Sinclair Noe” Radio Show interviewed Kim Wales on April 30, 2015 regarding the JOBS Act and timely issues of importance to small and emerging businesses seeking to raise capital. Listen here.
As a nationally recognized expert on crowdfunding and a thought leader on the JOBS Act, Kim Wales conducted the interview in Phoenix where she was in town to serve as a speaker and panelist at the Annual Conference of The Women Presidents’ Organization.
Some of the recent updates that Kim shared spanned how after three years of the JOBS Act being legalized, Regulation Crowdfunding is still not live. But with all things regulatory and as a major contributor to the final rules, Kim quickly explained why the market should be interested in Regulation A+ as a game changer. It is effectively a mini-IPO for small and emerging companies. At present, individuals and small, emerging growth companies (less than $1B in annual revenue) may go online and raise funds but now both accredited and non-accredited investors may participate. Non-accredited investors can invest up to 10% of their net worth or annual income in any one of these opportunities, thus democratizing the capital markets for small offerings.
“We are one step closer to what is hoped for in Title 3 and the next phase of the JOBS Act, but we still are not 100% there,” Kim stated. For example, cost structures may prevent start-up entrepreneurs from being able to raise money for their business. Blue Sky Law has been preempted so you no longer have to comply with state laws but instead may file at the federal level with the SEC for Tier 2 offerings and issuers can raise up to $50 million.
Overall, Kim believes that new regulations will stimulate job growth and that, by putting money in the hands of entrepreneurs who create at least 64 percent of net new jobs, small businesses will flourish.
Speaking at the Annual Conference of The Women Presidents’ Organization— the 2015 International Conference, Kim’s talks focused on the democratization of capital and what it means for those who seek to raise money for their business as well as how investors can identify opportunities in the marketplace.
Click here to listen to Kim Wales on Money Radio’s “Financial Review with Sinclair Noe.”