Title IV of the 2012 JOBS Act kicked in today. Now, the fastest growing private companies in America can conduct Mini-IPOs and raise up to $50 million from anyone. Historically, investing in startups and small businesses was reserved for just accredited investors, or just the wealthiest 2 percent of America. Now, after three years of anticipation, investing in pre-IPO companies will be opened up to the other 98 percent.
Mini-IPOs could also allow founders to take on less dilution and retain more control of their companies. So, should you consider a Mini-IPO? Here are seven reasons why you might want to:
1. Reward loyal customers
The change will be especially powerful for private companies that have already built a large and passionate customer base.