How Main Street Investors Are Disrupting the Venture Capital Community

At the start of 2021, everyday “main street” investors were more powerful than Wall Street hedge fund investors (thanks Reddit).

Similar to Wall Street hedge funds, the venture capital investment model is broken. Let me clarify; it’s not cracked, it’s broken. Why?

Well, it’s an old model based on a “country club fraternity” mentality.

First off, you have to pass the money test. Unless you’re an ultra-high net worth individual, a family office, a pension fund, or an investment institution that has tens of millions, if not hundreds of millions, you won’t get into the clubby venture capital community.

Then you have to have an existing relationship with a venture capitalist, and they don’t grow on trees. Nor are they typically your next-door neighbour. Unless you’re jet-setting to Aspen, yachting in the Caribbean, or have been a successful founder of a start-up, the likelihood of you knowing one is very slim…to none.

Due to these roadblocks, there has been no way for everyday Main Street investors to participate in getting in at the ground floor and investing early in the next Google, Uber, or Amazon. Not anymore! Like the Wall Street Hedge funds, venture capital is based on, dare we say…elitism.

The private start-up community is really looking to heat up. Monies keep pouring into venture capital firms to invest in the next herd of “unicorn” private companies that have the potential for huge returns. According to Pitchbook, the venture capital community companies raised a RECORD $69 billion in 2020, in the midst of the pandemic. Those monies will be used to invest in private start-up companies that most individuals will never get an opportunity to participate in.

As you can see, a record-setting amount of money has been raised to pour into the start-up, emerging companies that present tremendous opportunities. These companies have used the pandemic challenges to develop business models to help empower consumers to take back control of their health, daily routines, and personal confidence.

Well, there’s hope for us everyday Main Street investors who want to be their own venture capitalists and get in on the ground floor of some of these promising start-ups. That means YOU!

The venture capitalist community is SCARED, very SCARED, as they should be. You, on the other hand, should be fired up and eager to jump in! I know we are, as well as the investors who have already gotten on board with Greenfield Groves.

Learn more in our exclusive eBook, our gift to you.

Reg A Offerings is Venture Capital 2.0 for the EVERYDAY Main Street Investor

In a watershed announcement, the Securities and Exchange Commission (SEC) announced on November 2, 2020, updates to Reg A+ and crowdsourcing fundraising rules.

Key highlights of these updates include:

• Raising the fundraising amount of a Reg A+ Tier 2 Offering from $50M to $75M
• Revising certain individual investment limits
• Allowed for non-accredited investors to participate in Reg A+ offerings

Here’s a quote from former SEC Chairman Jay Clayton in the SEC’s press release about this announcement:

“For many small and medium-sized businesses, our exempt offering framework is the only viable channel for raising capital. These businesses and their prospective investors must navigate a system of multiple exemptions and safe harbors, each with different requirements,” said Chairman Jay Clayton. “While each component in this patchwork system makes some sense in isolation, collectively, there is substantial room for improvement. The staff has identified various costly and unnecessary frictions and uncertainties and crafted amendments that address those inefficiencies in the context of a more rational framework that will facilitate capital formation for small and medium-sized businesses and benefit investors for years to come.”

You can read the SEC press release in its entirety HERE.

What this all means is the SEC is now helping emerging and start-up companies with a simplified framework to expand in their ability to take in investments from both accredited and non-accredited individual investors. This is great news for Greenfield Groves and YOU, the investor.

The venture capital community realizes that it now has increased competition from Main Street investors. Just like what Reddit created with GameStop and hedge funds, the power of the people can equally be as powerful as professional, institutional investors.

A USA Today article highlighted how investing in Mini-IPO companies used to be only for high profile celebrities like Leonardo DiCaprio, Adam Levine, and Tobey Maguire, but these ground floor opportunities have been expanded to everyday individuals thanks in part to Mini-IPO platforms that have connected individual investors with high-quality companies.

This Company’s Regulation A+ Offering is Worth Your Investment Consideration

One company that’s worth investor consideration is Greenfield Groves. We’ve built a consumer-facing business model that hits all of the major themes coming out of the pandemic.

We offer compelling engaging content that promotes its telehealth and wellness services focusing on mental health, coupled with supporting branded wellness products that foster and build long-term customer lifetime value. This is what our society needed before the pandemic and as you can imagine, need now, more than ever. When the pandemic truly ends, if there should be such a day in the near future, the enormous mental aftermath will only increase the need for health and wellness products and services. Greenfield Groves will be the go-to destination for healing and solutions. In fact, we’re prepared now! We know investors like you don’t come around every day and that is why you are so important to our business.

Greenfield Groves has gone through a detailed vetting process to ensure it meets all necessary requirements and is in compliance with all regulations. The company is working with Fund America, one of the premier Mini-IPO platforms to offer its Regulation A+ investment offering.

Hope You Enjoyed the Read!