Dan Miller, President and Founder of Myrtle Grove Ventures, believes online finance and equity crowdfunding in particular will see significant and international growth over the next 10 to 20 years. As a direct result of the Regulation Crowdfunding put into place by Title III of the JOBS Act, it is easier for private companies—particularly small to medium enterprises (SMEs)—to raise funds, and for individual retail investors to invest in SMEs, which are the engines of the American economy. Online investment crowdfunding platforms, knows as funding portals, are a growing, global movement. Recent global regulatory changes have facilitated investment crowdfunding in countries such as the United Kingdom, Germany, France, Italy, Spain, Portugal, Australia, New Zealand, and now the U.S.
“It’s amazing to watch all the crowdfunding legislation take shape around the world,” said Mr. Miller. “The regulation nuances happening now are setting the stage for this growing movement, with the U.S. and U.K leading the way. Potential global hubs such as Switzerland and Singapore are now changing their regulation infrastructures. It will be beneficial that legislation being implemented globally will likely retain 80%-90% of the initial regulations. There is no other legislation being enacted like this on a global scale.”
In the U.S., prior to Title III of the JOBS Act being put into place, 94% of Americans were excluded from investing in private companies because they did not meet the net worth ($1 million total assets) or annual income ($200,000) requirements. Additionally, a majority of businesses were off-limits because 99% of U.S. companies with employees are privately held. Now, the rules have changed and more people can become investors. Under the new rules, investment crowdfunding will still be tightly regulated. Funding portals must be licensed by the SEC with oversight by FINRA. These portals will allow entrepreneurs to submit their business for funding, and will then work to vet the project, make sure it meets certain standards, and prepare offering materials to comply with securities regulations. Once the company has been approved, the investment will be posted on the crowdfunding platform, allowing any U.S. resident to invest. Once the investment commitments reach a pre-determined amount, the funding will close, and the company will receive the funds.
“Title III gives Americans more investing opportunities, which shifts the types of assets they want to invest in. I believe the projects most likely to succeed through online investment crowdfunding will be those that connect on an emotional and personal level with investors and that eventually crowdfunding will grow to the point where companies can tap their consumers to raise capital across a multitude of asset classes,” added Mr. Miller.
Miller believes that as a whole we are at the beginning of a major global shift in the world of finance and investment. The regulations put into place by Title III of the JOBS Act on May 16th will prove to be a turning point for crowdfunding. In the next ten to twenty years, the result will be diversified economies and smaller firms in the space.
About Dan Miller
Dan is the Founder of Myrtle Grove Ventures, a global investment holding company based in NYC with interests in real estate, finance, and technology. Dan launched Myrtle Grove Ventures in October 2015 to build a global investment platform that expanded upon his initial work in financial technology and real estate crowdfunding. Dan previously co-founded and served as president of Fundrise, the first and largest US real estate crowdfunding platform. During his tenure as Founder and President, Dan led the firm to become an industry leader and globally renowned business that continues to dominate its industry. Dan is also a Managing Partner of WestMill Capital Partners, a Washington D.C. based real estate development company. He remains involved with Western Development Corporation, his family’s real estate organization which has developed more than 20 million square feet in its 48-year history. Dan graduated from The Wharton School of the University of Pennsylvania as a submatriculant with a dual B.S. and M.B.A.
About Myrtle Grove Ventures:
Myrtle Grove Ventures (MGV) is a global investment holding company with interests in technology, finance, and real estate. MGV focuses specifically on the financial technology and investment crowdfunding sectors. MGV founds, funds, and operates companies in-house and brings in external partners and investors to help scale the organizations. MGV was founded by Dan Miller, a FinTech and crowdfunding pioneer, and is based in New York City.
