Decoding Accredited Investor Rules with Erik Nelson

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The principles of the game.
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All right, welcome to Capital

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Conversations where we decode
the financial world for smarter

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investing.
I am Eric Nelson and today Karen

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Rands and I are tackling an
important topic, the accredited

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investor rules, limits on
investor autonomy based upon

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income, wealth and not
necessarily knowledge and

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experience.
There are lawsuits and historic

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legislation in the works that
are they would have a far

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reaching impact on this and
we're going to take a good look

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at it and find out why this is
important, Karen.

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OK.
So Eric, you know, you have you

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have a lot of experience, you
know how investment banks work

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and companies raising capital
and novel ways lead to public's

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ability to invest with little to
no restrictions on who can buy

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the stock once it's public.
Why is there such an effort to

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change the accredited investor
rules?

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You know why?
Why is this effort you know that

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we're going to be talking about
so historic and far reaching?

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Well, you know them.
You know the history of the

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accredited investor rules that
they defined who could be an

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accredited investor based upon
net worth, income and some

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professional criteria that we'll
get into later.

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But what these new rules could
do, the changes or this lawsuit

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that's in the works, is they
could open up private

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investments to virtually
everyone or anyone.

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And that will allow people to
come in and potentially make an

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investment into the next
Facebook or Google or some other

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investment that could take them
from having little to no net

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worth to being very wealthy.
So we're going to take a look at

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it and see what the changes are
and if you know, and there's

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some good reason, reasons why
these rules were originally put

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in place, how they're applied.
But for example,

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cryptocurrencies, which are not
securities are not covered by

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these rules.
So once you're of legal age to

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own assets, you know, above the
age of 18, you could buy your

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cryptocurrencies.
But also, these rules are a

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little inconsistent when anybody
can go gamble in Las Vegas, bet

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their life savings away with no
no real restrictions, or, you

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know, spend money Willy nilly on
online gambling or other items

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and the SEC and Congress just
lets them go at.

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So which is interesting, you
know, get given that, you know,

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income level seems to be the way
that they're trying to view the

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level of sophistication and the
ability to discern risk from

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1:00, you know, investment
product from another investment

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product.
They try to, we'll get into the

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crowdfunding rules and they try
to, you know, sort of couch it,

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if you will, that, you know, if
you don't have enough income,

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then you're limited in how much
you can put into any given

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company depending if they're
doing general solicitation or

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not.
You know, that's sort of one of

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the big criteria is general
soliciting, like being a public

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company and soliciting to the
public, you know, carries a

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different set of rules than
traditional stocks that are

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already out of the public
because there is no limit to

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somebody being able to invest in
a public company, right?

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And so, you know, it's, it's
interesting that it's geared as

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this knowledge level.
Like if you're rich enough, then

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you must be smart enough to know
how to make every kind of

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investment.
And we all have seen examples of

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people that, you know, come into
some money, whether it's

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inherited or it's one or
whatever the case, yeah, win the

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lottery.
And then they don't know how to

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manage their money.
They don't know how to invest it

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wisely.
And also sometimes they get bad

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advice from financial advice,
right?

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That's the whole story behind
all of the professional athletes

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that were getting blamed for,
you know, being broke five years

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after they stopped playing.
In reality, it was because they

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were getting financial advice
from people that were, you know,

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looking at people that are 60
and only need to have their

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money for the next 20 years, not
people that are 35 and need it

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for the next 45 years, right?
And so, you know, investing in

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businesses rather than just
stocks or these other things,

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right?
That they could they that

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doesn't keep up with their
income producing ability when

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they were when they were
professional athletes making big

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salaries, but you know,
investing in businesses produce

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the biggest returns, you know,
as a scale, like you said in the

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in the the piece on on Facebook.
But before we get too far down

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into it, let's jump in on on our
disclaimer because we are

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talking finance stuff and we do
offer our own opinion that as to

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what, you know, what our
thoughts are about invest in

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investing.
And sometimes you and I don't

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always agree, which is the
reason why I read the

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disclaimer, because everybody's
on their own.

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All right, so here we go.
The information provided in this

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podcast is for educational and
informational purposes only and

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is not intended as financial
advice.

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The views and The opinions
expressed by the hosts and

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guests are their own and do not
necessarily reflect the official

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policy or position of any
financial institution or

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organization.
You should always consult with a

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qualified financial advisor or
conduct your own research before

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making any investment decisions.
The content of this podcast may

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include forward-looking
statements that are subject to

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risk and uncertainties.
We do not guarantee the

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accuracy, completeness, or
usefulness of any information

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discussed.
By listening to this podcast,

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you agree not to hold the host,
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reliance on the information
provided.

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And there you go there.
You go and thank you for tuning

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in folks because you know this
is we're going to be talking

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about the lawsuit that is
accredited investor that had all

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the knowledge of the marketplace
of the type of investment was

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just at the edge of it should
have been able to invest based

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on her at level of expertise
what was prohibited.

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And now there's a there's a
nonprofit legal group that

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represents investors that is
suing the SEC.

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And I and then, you know, we're
going to get into some of the

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legislative action that's
working its way through

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Washington right now at the
House and Senate level that

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might address some of these
issues with accredited.

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And, you know, there's there's
the people that have

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traditionally been the high net
worth accredited people really

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don't want to play in the same
sandbox as unaccredited

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investors.
So there's pushback from that

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perspective as well.
They like to have some exclusive

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deals.
And it's not to say that a

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company that raises money from
unaccredited investors could

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never be the next Facebook,
because we've already seen that

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with Oculus headset that got
bought by Facebook for $800

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million, right?
That's one of the ones I use a

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lot in my example.
And like in my oh, here's my say

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my my new book, shameless plug
for the new book.

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This is a not for sale version.
You can go buy on Amazon and get

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your hardback version very
beautifully printed.

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All that stuff.
Anyway, I talked about in the

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first book that's behind me here
for those that are watching

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inside secrets to Angel
investing and this one that part

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of the motivation for changing
the laws when it came to general

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solicitation was the, the the
elected leaders were forced to

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face the fact that they were
limiting the people's ability to

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invest in these opportunities.
But they could, they were not,

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you know, they could go out and
put $1,000,000 towards bringing

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the Oculus headset to market.
A guy in a garage probably about

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as risky as you could get brand
new technology.

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You know, it was very forward
thinking.

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It was, you know, people have
been trying to solve the a, the

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virtual virtual reality headset
for a long time.

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This kid figured out a solution
that people wanted.

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They paid thousand couple $1000
for getting a piece of gear

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before it it was ever public, I
mean before it was ever

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available in a store or anything
like that.

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And years later when they raised
venture capital and they went on

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to get bought by by Facebook as
part of the Meta environment.

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Now you get to see that in those
those Ray Ban glasses so that

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you can meet in Meta with your
Ray Ban prescription glasses.

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The forwardness of technology.
What if those people had, they

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had an obsolete piece of, of
equipment that they couldn't do

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nothing for him.
You know, a couple of years

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later had they had 1000 or $2000
in stock, which by the way, if

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you're not an accredited
investor current, the limit is a

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maximum of $2000 in a
crowdfunded company.

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They they could go ahead and
that might be worth $8000.10

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thousand dollars, 20,000
dollars, $80,000.

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We just don't know because it
was illegal at the time.

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Now it's not see.
So there is an opportunity which

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is what you know is my
passionate is making people

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aware they have the ability to
do that and they don't have to

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have $100,000 to get started.
You can get started with a whole

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lot less.
You just have to be consistent

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and persistent with building a
portfolio.

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So that's my little soapbox on
that.

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But you know, let's let's talk
about you were saying when you

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were first introducing, when you
were first introducing the

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concept that there's some pros
and cons with, you know, we'll

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get into sort of the nitty
gritty of these other stuff.

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But let's talk about, you know,
at a high level, what are the

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pros and cons of having a
guideline that says based on

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income rather than knowledge
that people, certain people can

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invest in certain things?
Well, then the pro on that is,

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you know, the SEC originally
when they came up with these

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rules decided that your income
level and your net worth was

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somewhat of a gauge of your
level of sophistication.

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You would not get to that level
of income or net worth if you

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were not somewhat smart and
knowledgeable about finance and

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investing.
The other thing is when it comes

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to the ability to shoulder the
risk or bear the risk of a loss,

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the SEC looks at that and if you
had a high net worth, then you

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could withstand losing a little
bit of money in a in a very

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risky investment in the we
don't.

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Know any millionaires that have
gone bankrupt?

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Have Do we?
I could think of a few, you

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know, but you know,
additionally, private placements

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are riskier because they're
harder to sell and it's just as

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simple as that right now, our
private placements are riskier

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because you have a predetermined
holding period by the SEC.

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You know, under Rule 1 to 44,
it's six months and if that's

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not available, it's a two year
hold under the 4A2 exemption.

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Well, 4A1 legal opinion, but you
know, they pass these rules,

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they refine them a little bit.
So if you're knowledgeable, for

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example, say you are a young
investment banker out of college

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and you don't meet the net worth
requirement, you can say, well,

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I got the knowledge to do this
and you can get in.

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But that also leaves a lot of
other people out and that.

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That's a license thing.
You can be licensed to be

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considered an, A sophisticated
investor that is authorized to

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participate as an accredited
investor, right.

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But there is like for
technically, I mean, I'm, I

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wouldn't next like put 25K into
a company because I don't have

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that kind of liquidity sitting
around.

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But technically I'm an
accredited investor, you know,

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and, and it's a, but, you know,
and I, but even if I wasn't, I'm

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definitely more knowledgeable
than a lot of the investors that

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I know invest regularly in Angel
investor deals, right?

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They just like, you see it all
the time with I like, I, cuz you

228
00:14:01,400 --> 00:14:03,720
know, when I do my business plan
review and I do my, our red

229
00:14:03,720 --> 00:14:07,040
flags, we talked about the red
flag podcast a while back.

230
00:14:07,240 --> 00:14:08,920
These are the things that you
should look at.

231
00:14:09,160 --> 00:14:11,360
And they don't know how to read
financial statements.

232
00:14:11,360 --> 00:14:15,360
They don't know how to assess a,
a forward-looking statement on

233
00:14:15,640 --> 00:14:18,000
on do they have a pathway to
profitability?

234
00:14:18,360 --> 00:14:21,160
And so they'll, they're, they
make the same mistakes as

235
00:14:21,160 --> 00:14:24,000
somebody that's not accredited,
that they invest based on the

236
00:14:24,000 --> 00:14:28,760
emotion and the charisma of the
founder and the ability to put

237
00:14:28,760 --> 00:14:32,040
together good materials without
looking at, you know, what's

238
00:14:32,040 --> 00:14:35,200
underneath the covers.
Do they actually know who their

239
00:14:35,200 --> 00:14:38,360
competition is?
Do they actually have a plan to

240
00:14:38,360 --> 00:14:41,520
get to market and scale?
Do they the biggest mistake that

241
00:14:41,520 --> 00:14:45,560
they oftentimes accredited
investors make when investing in

242
00:14:45,560 --> 00:14:49,840
private is that they don't, they
don't account for the ability of

243
00:14:49,840 --> 00:14:52,480
the company to raise all the
money that they need to actually

244
00:14:52,480 --> 00:14:55,120
go all the way through to an
exit.

245
00:14:55,400 --> 00:14:59,000
And so they those companies end
up getting stuck after their

246
00:14:59,000 --> 00:15:03,320
first series of capital, their,
their seat or their Series A and

247
00:15:03,320 --> 00:15:05,280
they don't raise their next
round of capital.

248
00:15:05,800 --> 00:15:09,120
And so they just putter along
what I call Midlands in the

249
00:15:09,120 --> 00:15:10,800
middle of a thing.
And they never they don't get to

250
00:15:10,800 --> 00:15:13,440
scale to an exit.
That's why we try to help

251
00:15:13,440 --> 00:15:17,000
companies with reggae plus right
is trying to give them a pathway

252
00:15:17,000 --> 00:15:20,720
to get to an exit.
And it's it's it's it's stunning

253
00:15:20,720 --> 00:15:27,480
to me how many sophisticated
accredited investors routinely

254
00:15:27,480 --> 00:15:29,920
make these mistakes.
And they'll tell me sometimes,

255
00:15:29,920 --> 00:15:32,880
yeah, you know, this company,
I'm like going, I don't tell

256
00:15:32,880 --> 00:15:34,760
them because I don't want, I
want them to like me.

257
00:15:34,760 --> 00:15:36,440
So I don't tell them.
That was stupid.

258
00:15:36,440 --> 00:15:40,040
But I'm like, man, I would have
flagged that one right off, you

259
00:15:40,040 --> 00:15:42,360
know?
Well, yeah, And I call those

260
00:15:42,360 --> 00:15:44,920
companies zombie companies
because until they make some

261
00:15:44,920 --> 00:15:46,600
changes, they're they're going
nowhere.

262
00:15:47,320 --> 00:15:50,800
Your money is kind of, you know,
dead money walking, for lack of

263
00:15:50,800 --> 00:15:54,880
a better term.
You know, the important thing

264
00:15:54,880 --> 00:15:58,920
is, you know, a lot of a lot of
times you see a minimum

265
00:15:58,920 --> 00:16:03,840
investment of $25,000, but you
could have a younger person

266
00:16:04,160 --> 00:16:08,160
who's sophisticated who or
qualifies as accredited, who

267
00:16:08,160 --> 00:16:11,560
could put in a smaller amount,
maybe pull it, pull it with some

268
00:16:11,560 --> 00:16:13,360
of their friends.
They could qualify.

269
00:16:15,480 --> 00:16:17,800
Maybe it's not the next high
tech growth company.

270
00:16:17,800 --> 00:16:23,280
Maybe they want to form an LLC
and invest in a new bank and and

271
00:16:23,280 --> 00:16:25,880
then for the hopes of the
dividends down down the road.

272
00:16:25,880 --> 00:16:29,760
I mean, you know, our bank
clients at Mount share transfer,

273
00:16:30,160 --> 00:16:32,240
you know, they're they're all
making money and they're all

274
00:16:32,240 --> 00:16:36,960
doing well.
And the other thing where this

275
00:16:36,960 --> 00:16:40,440
gets into play is if you can
qualify as an accredited

276
00:16:40,440 --> 00:16:45,200
investor, then your ability to
privately offer securities or

277
00:16:45,200 --> 00:16:49,640
raise money in different states
changes because the states still

278
00:16:49,640 --> 00:16:52,520
limit the number of non
accredited investors that can

279
00:16:52,520 --> 00:16:56,640
participate.
So there's far are arranging

280
00:16:56,800 --> 00:16:59,200
ramifications for this and this
is a big deal.

281
00:16:59,480 --> 00:17:01,800
Yeah, let me, OK.
So let me let's step back on

282
00:17:01,800 --> 00:17:06,720
that because that's what's sort
of so if you're so, so at the

283
00:17:06,720 --> 00:17:08,240
federal level we're talking
about.

284
00:17:08,240 --> 00:17:11,640
But then states themselves have
a different definition of what

285
00:17:11,640 --> 00:17:16,200
qualifies as accredited.
Well, normally they don't, but

286
00:17:16,200 --> 00:17:20,040
what they do is through their
so-called blue sky laws, they

287
00:17:20,040 --> 00:17:26,040
limit the number of, you know,
non accredited investors into a

288
00:17:26,040 --> 00:17:30,840
private placement before they
require a more complex filing

289
00:17:30,840 --> 00:17:33,720
and.
That that's under a but that now

290
00:17:33,760 --> 00:17:36,320
that was the right the original
reggae.

291
00:17:36,320 --> 00:17:39,720
What is another?
It's what it was another

292
00:17:39,720 --> 00:17:44,040
offering that qualified that
requires a blue sky file.

293
00:17:45,400 --> 00:17:52,440
Your offerings under Rule 506 of
the 33 Act, the Securities Act

294
00:17:52,440 --> 00:17:55,040
of 33. 5O6B.
So.

295
00:17:55,880 --> 00:17:58,360
That's because you file your
private placement with the local

296
00:17:58,360 --> 00:18:02,680
state state Secretary of State.
Yeah, yeah.

297
00:18:03,040 --> 00:18:04,680
That's.
Considered the blue sky part of

298
00:18:04,680 --> 00:18:06,760
that, Yeah.
Is that filing process?

299
00:18:07,600 --> 00:18:10,360
Yeah.
Or if you do an offering under

300
00:18:10,360 --> 00:18:16,560
the 48 the the 482 exemption
it's still accredited versus non

301
00:18:16,560 --> 00:18:18,440
accredited comes into play.
Yeah.

302
00:18:19,480 --> 00:18:22,960
So this you know it, I don't
want to get too far off into the

303
00:18:22,960 --> 00:18:27,120
weeds, but opening this up makes
it easier for money to raise

304
00:18:27,120 --> 00:18:28,760
capital.
And throughout my career, I've

305
00:18:28,760 --> 00:18:32,120
seen a lot of great companies
and products that died because

306
00:18:32,120 --> 00:18:34,800
they just couldn't manage the
capital raising process.

307
00:18:35,040 --> 00:18:41,320
Well, to that end though, so I
mean, I think they need to

308
00:18:41,320 --> 00:18:42,880
clean.
There's a muddy water when it

309
00:18:42,880 --> 00:18:45,800
comes to the various equity
crowdfunding, but there's

310
00:18:45,800 --> 00:18:48,920
mechanisms for companies that
are struggling.

311
00:18:48,920 --> 00:18:51,960
Regular, regular.
It's like in Georgia itself, we

312
00:18:51,960 --> 00:18:55,960
have the investor exemption.
It's the ability for any company

313
00:18:55,960 --> 00:18:59,000
in Georgia to raise $5 million
from accredited and

314
00:18:59,000 --> 00:19:01,880
unaccredited, you know, through
general solicitation.

315
00:19:01,880 --> 00:19:04,320
They can pretty much raise
capital any way they want.

316
00:19:04,640 --> 00:19:07,360
And it's a one page file or that
they got to file with the state

317
00:19:07,360 --> 00:19:09,840
for about 500 bucks.
It's about the simplest thing in

318
00:19:09,840 --> 00:19:12,200
the world, and I've been, you
know, promoting it with the

319
00:19:12,200 --> 00:19:15,400
chamber down here and my whole
framework for economic

320
00:19:15,400 --> 00:19:18,320
resilience that I'm passing
around, you know, working a way

321
00:19:18,320 --> 00:19:22,480
up through the Georgia Office of
Offices of Innovation.

322
00:19:23,040 --> 00:19:26,840
And the idea there is that
whether it's a business, imagine

323
00:19:26,840 --> 00:19:29,520
a business with all the stuff
that's going on right now that

324
00:19:29,640 --> 00:19:33,960
that it's been manufacturing
offshore for, you know, 20

325
00:19:33,960 --> 00:19:36,120
years.
Because when they first got

326
00:19:36,120 --> 00:19:39,040
started, they couldn't afford to
build a plant and they couldn't,

327
00:19:39,320 --> 00:19:41,720
you know, even outsource it five
days a week.

328
00:19:41,720 --> 00:19:44,560
It just made sense to go
offshore and do part of a

329
00:19:44,560 --> 00:19:47,840
container.
And then as it's grown, it was

330
00:19:47,840 --> 00:19:50,120
just convenient to continue
doing that way.

331
00:19:50,120 --> 00:19:52,960
It's no longer, since COVID,
it's gotten less and less

332
00:19:52,960 --> 00:19:56,800
convenient to manage your supply
chain when you're coming in from

333
00:19:56,800 --> 00:19:58,840
offshore.
And now the tariffs that are

334
00:19:58,840 --> 00:20:02,560
jacking up the prices is, you
know, is causing heartburn for a

335
00:20:02,560 --> 00:20:05,160
lot of these businesses.
And there's been tax incentives

336
00:20:05,160 --> 00:20:07,520
for a long time to do
manufacturing in the United

337
00:20:07,520 --> 00:20:09,760
States.
That's not something that's new.

338
00:20:09,760 --> 00:20:11,000
I'm assuming they're still
there.

339
00:20:11,360 --> 00:20:15,200
And, you know, the idea was they
could qualify for, let's say

340
00:20:15,200 --> 00:20:19,440
they could qualify for $5
million from a bank loan, SBA

341
00:20:19,440 --> 00:20:22,200
for equipment facility, a
building, things like that.

342
00:20:22,440 --> 00:20:25,120
But they need to manage
inventory in between.

343
00:20:25,360 --> 00:20:28,200
As their transition, they need
to hire up people and get them

344
00:20:28,440 --> 00:20:32,320
skilled on the on working these
new in these new, you know, this

345
00:20:32,320 --> 00:20:34,240
new equipment.
They need marketing.

346
00:20:34,240 --> 00:20:37,720
They might be putting out a, a
new product and they could go

347
00:20:37,720 --> 00:20:40,800
raise $5 million from the other
business owners in their

348
00:20:40,800 --> 00:20:46,240
chamber, the alumni from their
frat or their sorority at, you

349
00:20:46,240 --> 00:20:49,680
know, Georgia Tech, let's say,
or UGA.

350
00:20:50,120 --> 00:20:52,800
They could go to their church,
they could go to their Rotary.

351
00:20:52,800 --> 00:20:54,880
They could put out a postcard or
mail it.

352
00:20:54,880 --> 00:20:56,680
They could advertise it on the
radio.

353
00:20:56,920 --> 00:21:00,520
They could do whatever and raise
the other $5,000,000, you know,

354
00:21:00,520 --> 00:21:03,240
with obviously a structured and
qualified offering.

355
00:21:03,440 --> 00:21:05,720
And they would want to make sure
that they were set up properly

356
00:21:05,720 --> 00:21:07,880
to raise capital from people
like us.

357
00:21:08,120 --> 00:21:12,000
But they could raise that money
and then and instead of doing it

358
00:21:12,000 --> 00:21:15,400
necessarily as a straight up
equity where that company feels

359
00:21:15,400 --> 00:21:18,640
the need to try to find an exit
in five years, they could be

360
00:21:18,640 --> 00:21:20,880
building this as a generation
operational business.

361
00:21:21,080 --> 00:21:23,560
They can pay them a percentage
of their revenue until double

362
00:21:23,560 --> 00:21:26,120
their money is paid back.
Most people would love to get

363
00:21:26,120 --> 00:21:28,920
double their money in two or
three years, you know, because

364
00:21:28,920 --> 00:21:32,120
you don't really find very many
options to do that on the stock

365
00:21:32,120 --> 00:21:35,240
market.
So, you know, it's there's so

366
00:21:35,240 --> 00:21:38,320
much that can be done through
the programs that are already

367
00:21:38,320 --> 00:21:42,120
out there.
If they if people won,

368
00:21:42,120 --> 00:21:44,680
understood they could raise
capital that way and two people

369
00:21:44,680 --> 00:21:46,400
understood that they could
invest that way.

370
00:21:46,640 --> 00:21:51,800
But we I just, you know, I just
want it to me, there's sometimes

371
00:21:51,800 --> 00:21:53,560
we don't have to reinvent the
wheel.

372
00:21:53,560 --> 00:21:58,160
We just need to put a new rubber
tube on it or something like

373
00:21:58,240 --> 00:21:59,920
that to make it roll better, you
know?

374
00:22:00,400 --> 00:22:02,200
You know, and the important
thing to keep in mind is with

375
00:22:02,200 --> 00:22:05,680
these Georgia exemptions, all
the investors have to be Georgia

376
00:22:05,680 --> 00:22:06,920
residents.
Right.

377
00:22:06,920 --> 00:22:08,400
Oh, I didn't say that.
Yeah.

378
00:22:08,400 --> 00:22:12,120
So virtually every state has an
exemption that says if you raise

379
00:22:12,120 --> 00:22:17,440
money solely from in state
investors, say you're starting

380
00:22:17,440 --> 00:22:22,520
in a ethanol, ethanol plant up
in the Lakota, Iowa and you're a

381
00:22:22,520 --> 00:22:25,520
farmer and putting that deal
together and you go raise money

382
00:22:25,520 --> 00:22:30,160
from all farmers in Iowa, you've
got an exemption on that and

383
00:22:30,160 --> 00:22:34,520
that that works.
That's a true story that

384
00:22:34,520 --> 00:22:39,200
actually happened.
It it's when the business owner

385
00:22:39,800 --> 00:22:44,000
thinks they don't know enough in
state investors that they they

386
00:22:44,000 --> 00:22:47,240
pass on those those exemptions.
Yeah, well, that's why it's same

387
00:22:47,240 --> 00:22:48,800
thing.
Anybody raising capital on a

388
00:22:48,800 --> 00:22:52,280
national level on a reggae or
Reg CF doesn't know everybody

389
00:22:52,280 --> 00:22:55,840
that's going to invest either.
Your restaurant owner in Las

390
00:22:55,840 --> 00:22:59,440
Vegas and everybody loves your
restaurant, but you're not sure

391
00:22:59,440 --> 00:23:02,480
you can find enough people in
Nevada to give you the 5 million

392
00:23:02,480 --> 00:23:03,760
in each.
Yeah, right.

393
00:23:04,200 --> 00:23:07,600
And every state, just before
Full disclosure, there's only

394
00:23:07,600 --> 00:23:13,560
about 34 states that still have
an Interstate exemption on it.

395
00:23:13,560 --> 00:23:21,120
When it first came out, like 49
had something in the works, but

396
00:23:21,120 --> 00:23:23,360
some of them passed, some of
them got rescinded.

397
00:23:23,680 --> 00:23:25,640
Some of them, you know, never
passed.

398
00:23:25,840 --> 00:23:30,040
And the rules vary by state on
the complexity, like Florida,

399
00:23:30,040 --> 00:23:32,240
for example.
The reason why they've done none

400
00:23:32,240 --> 00:23:36,000
down there is that they require
you to be on a portal and there

401
00:23:36,000 --> 00:23:38,000
are no portals licensed in the
state.

402
00:23:38,320 --> 00:23:40,720
So you know.
Yeah, because Georgia has a

403
00:23:40,720 --> 00:23:45,840
Georgia only portal, doesn't it?
No, no, it's very open.

404
00:23:46,000 --> 00:23:48,560
We've only, although even though
it's been around for 10 years

405
00:23:48,560 --> 00:23:53,680
because we were the did it, we
passed it before there was the

406
00:23:53,680 --> 00:24:00,880
JOBS Act for equity crowdfunding
in in 2012, only maybe 105 a 110

407
00:24:00,880 --> 00:24:04,080
companies have done it.
And that one company start up a

408
00:24:04,400 --> 00:24:06,040
portal just for Georgia
resident?

409
00:24:06,200 --> 00:24:07,400
They did.
They went out of business

410
00:24:07,400 --> 00:24:10,080
because they're going up too
slow to get adopted.

411
00:24:10,080 --> 00:24:15,560
And and my understanding I this
is all hearsay, but the founders

412
00:24:15,560 --> 00:24:20,080
started muddy in the waters with
how they were using their funds

413
00:24:20,080 --> 00:24:22,640
and things like that.
Done.

414
00:24:24,000 --> 00:24:27,440
I can't ever do that.
Look, you know, fundamentally

415
00:24:27,440 --> 00:24:30,840
it's important for the SEC to
provide investor protection, but

416
00:24:30,840 --> 00:24:33,640
also enable access to the to the
capital markets.

417
00:24:33,920 --> 00:24:39,920
You know, the SEC has, you know,
a certain level of a mandate to

418
00:24:39,920 --> 00:24:43,520
make capital accessible to
businesses looking to grow.

419
00:24:44,160 --> 00:24:47,560
And they, they have a small
business roundtable.

420
00:24:47,960 --> 00:24:50,440
It meets periodically.
I've, I've never gone to it.

421
00:24:50,440 --> 00:24:55,560
I should go up there someday.
And but there's a lot of small

422
00:24:55,560 --> 00:24:59,640
businesses that have come on to
be life changing, leading

423
00:25:00,320 --> 00:25:03,120
investments.
Let's not forget that you know

424
00:25:03,840 --> 00:25:06,640
Steve Jobs and you know Steve
Wozniak.

425
00:25:06,640 --> 00:25:10,040
They started Apple Computer in a
garage, you know.

426
00:25:10,880 --> 00:25:13,160
Not bad for a couple college
dropouts.

427
00:25:13,920 --> 00:25:19,440
Well, if you go to like I call
the the the original granddaddy

428
00:25:19,440 --> 00:25:22,440
of brick and mortar, right would
be Home Depot.

429
00:25:22,840 --> 00:25:25,560
Now, you know, that was a novel
concept.

430
00:25:25,800 --> 00:25:29,120
We got a lot of cost associate.
You know, that's one of those

431
00:25:29,120 --> 00:25:32,160
things where it's like what is
the cost of goods and the cost

432
00:25:32,160 --> 00:25:35,400
of the money that has to go into
generating each each revenue or

433
00:25:35,400 --> 00:25:38,320
return on revenue.
Software companies are tend to

434
00:25:38,320 --> 00:25:42,040
be a whole lot less costly for
generating revenue than

435
00:25:42,040 --> 00:25:46,040
something like a Home Depot.
But that's two guys that, you

436
00:25:46,040 --> 00:25:49,400
know, decided this would be a
novel concept and very

437
00:25:50,080 --> 00:25:53,480
selectively and with an
investment banker put together a

438
00:25:53,480 --> 00:25:59,720
small group of private investors
and a very similar to how you

439
00:25:59,720 --> 00:26:04,120
architects deals a strategic
investor that would give them

440
00:26:04,120 --> 00:26:06,880
very friendly loan money.
So they had a little bit of an

441
00:26:06,880 --> 00:26:10,200
equity and a loan money that
would get paid out or maybe it

442
00:26:10,200 --> 00:26:12,520
got converted.
There's not a lot of information

443
00:26:12,520 --> 00:26:15,360
about the original 5 million
that went in there.

444
00:26:15,360 --> 00:26:18,800
But I know that there was
additional, you know, stuff that

445
00:26:18,800 --> 00:26:20,280
went after.
I didn't, you know, of course,

446
00:26:20,280 --> 00:26:22,240
to build all the additional
locations after that.

447
00:26:22,240 --> 00:26:25,640
But you know, they're still,
they're still super duper

448
00:26:25,640 --> 00:26:29,440
wealthy as a result of that
public offering eons ago, you

449
00:26:29,440 --> 00:26:32,040
know, so maybe it would be
useful.

450
00:26:32,040 --> 00:26:35,400
You were starting to talk about
the accredited investors and how

451
00:26:35,400 --> 00:26:39,920
you qualify for that.
You know, part of that was

452
00:26:39,920 --> 00:26:44,520
people should understand it
hasn't changed a lot since it

453
00:26:44,520 --> 00:26:47,920
was first put in place in
response to the collapse of the

454
00:26:47,920 --> 00:26:49,880
stock market and the Great
Recession.

455
00:26:50,160 --> 00:26:53,920
When they established the rules
that said companies had to file

456
00:26:54,120 --> 00:26:57,760
and be transparent, you know,
with so that they could, there

457
00:26:57,760 --> 00:27:00,280
wasn't any backroom deals and
they put all these rules in

458
00:27:00,280 --> 00:27:04,920
place and they established the
accredited investor rules.

459
00:27:05,160 --> 00:27:07,800
Or actually, I guess they, they,
they staff, I guess the credit

460
00:27:07,800 --> 00:27:10,480
investor rules weren't
officially established, still

461
00:27:10,480 --> 00:27:15,440
82, but they had had some kind
of an exemption that the

462
00:27:15,440 --> 00:27:18,600
industrialists from back then
wanted to continue to work in

463
00:27:18,800 --> 00:27:22,160
investing in each other's
businesses, you know, without

464
00:27:22,160 --> 00:27:25,480
the SEC, you know, watching them
because they weren't public

465
00:27:25,480 --> 00:27:26,560
companies.
They were private.

466
00:27:26,560 --> 00:27:29,800
They wanted to keep it private.
So, you know, there's been,

467
00:27:31,080 --> 00:27:33,240
there's, you know, that was
where it first got and they

468
00:27:33,240 --> 00:27:36,520
cleared it up, I guess and
established some more specific

469
00:27:36,520 --> 00:27:40,160
threshold in 1982 that still
stands this day.

470
00:27:40,480 --> 00:27:42,400
Yeah.
So what it is, is there's three

471
00:27:42,400 --> 00:27:47,080
main criteria that can three
ways to qualify as an accredited

472
00:27:47,080 --> 00:27:48,800
investor.
The first is to have a net worth

473
00:27:48,800 --> 00:27:53,200
that exceeds $1 million.
Now that has to exclude your

474
00:27:53,200 --> 00:27:58,400
house, so you cannot have a, you
know, an investment portfolio of

475
00:27:58,400 --> 00:28:03,400
$300,000 and a $800,000 house
and say I'm worth 1.1.

476
00:28:03,400 --> 00:28:06,400
So I'm accredited.
So your, your residence is

477
00:28:06,400 --> 00:28:10,560
excluded from that calculation.
The second way to qualify as an

478
00:28:10,560 --> 00:28:13,640
accredited investor is you
individually must have net

479
00:28:13,640 --> 00:28:18,160
income over $200,000 a year for
the past two years.

480
00:28:18,160 --> 00:28:21,680
Or if you're married, your
spouse and yourself must have

481
00:28:21,680 --> 00:28:26,320
net income combined over
$300,000 for the last couple of

482
00:28:26,320 --> 00:28:30,400
years.
Now the other criteria that got

483
00:28:30,400 --> 00:28:33,480
it expanded upon is if you are
professionally licensed.

484
00:28:33,480 --> 00:28:37,120
This was a rather kind of new
change because when I got out of

485
00:28:37,120 --> 00:28:42,000
college and you know got my
license a month later, tough

486
00:28:42,000 --> 00:28:44,960
luck.
I could be licensed to sell

487
00:28:44,960 --> 00:28:46,920
securities that I couldn't
invest in personally.

488
00:28:47,520 --> 00:28:52,120
So they if you are have an
investment professional license,

489
00:28:52,120 --> 00:28:56,160
a series 76582 or a bunch of
others or you serve as a

490
00:28:56,760 --> 00:29:00,560
director or an executive officer
of a company issuing securities,

491
00:29:00,560 --> 00:29:04,040
you can you're deemed to be
knowledgeable and you can invest

492
00:29:04,040 --> 00:29:08,240
in those those securities.
Now they've expanded that a

493
00:29:08,240 --> 00:29:11,280
little bit further.
Say, for example, you are an

494
00:29:11,280 --> 00:29:13,640
employee of Mountain Share
Transfer.

495
00:29:13,640 --> 00:29:16,320
You can claim you're
sophisticated and you can make

496
00:29:16,320 --> 00:29:20,480
these investments, and whether
you actually are not as well

497
00:29:20,480 --> 00:29:23,360
remains to be seen at times.
Well, that's managing a private

498
00:29:23,360 --> 00:29:26,680
fund or something, right?
Or that which is actually what

499
00:29:26,680 --> 00:29:29,680
the lawsuit was about, right.
The lawsuit that that's on in

500
00:29:29,680 --> 00:29:32,920
the works right now.
So it's a fund so like in that,

501
00:29:33,000 --> 00:29:36,840
you know, but it's, it's the so
like a venture fund, people

502
00:29:36,840 --> 00:29:39,720
working for the venture fund
could invest in the venture fund

503
00:29:39,720 --> 00:29:42,960
even if they weren't accredited.
Yeah, there's that.

504
00:29:42,960 --> 00:29:44,280
Stuff gets a little more
complicated.

505
00:29:45,000 --> 00:29:48,240
Your your venture capital and
your hedge funds, private

506
00:29:48,240 --> 00:29:51,480
equity, you know, they're all
private investments.

507
00:29:52,400 --> 00:29:54,000
So.
They're going.

508
00:29:54,520 --> 00:29:55,800
Yeah.
Were you saying then like

509
00:29:55,800 --> 00:29:58,720
somebody that working at Merrill
Lynch would be able to invest in

510
00:29:58,720 --> 00:30:02,800
the funds that only accredited
investors that they're that

511
00:30:02,800 --> 00:30:06,000
they're, you know, offering
could only invest in?

512
00:30:08,160 --> 00:30:12,600
So if I, for example, worked at
Merrill Lynch, now Bank of

513
00:30:12,600 --> 00:30:16,800
America Securities, and I wanted
to invest, you know, into

514
00:30:16,840 --> 00:30:21,840
Karen's, you know, hedge fund, I
could claim I'm accredited.

515
00:30:22,720 --> 00:30:27,640
And Karen's attorneys may say,
yeah, we'll take your money.

516
00:30:29,120 --> 00:30:33,120
Or they may say we don't think
so.

517
00:30:33,800 --> 00:30:39,200
You're not really accredited.
And my guess is not having read

518
00:30:39,200 --> 00:30:43,320
too deeply into this lawsuit
that the the attorneys decayed

519
00:30:43,320 --> 00:30:45,800
their the employees of the
management company from

520
00:30:45,800 --> 00:30:49,520
investing into the fund.
No, that, that, that, that he

521
00:30:49,560 --> 00:30:50,840
wasn't that.
Here, let me get it.

522
00:30:50,960 --> 00:30:57,440
Let's get into that, OK?
But anyhow, when you run a fund,

523
00:30:58,320 --> 00:31:00,640
you're governed under a series
of exemptions as long as you're

524
00:31:00,640 --> 00:31:03,920
below a certain size.
And if you are below 25,000,000

525
00:31:03,920 --> 00:31:07,360
in assets, you don't need to
have a registered investment

526
00:31:07,360 --> 00:31:10,480
advisor license.
So.

527
00:31:10,760 --> 00:31:13,120
But once you cross that
threshold, you have to register

528
00:31:13,120 --> 00:31:15,960
with the SEC.
Yeah.

529
00:31:16,360 --> 00:31:19,160
Because the only thing is you
could run billions of dollars

530
00:31:19,160 --> 00:31:23,000
and do no reporting whatsoever
up until just recently.

531
00:31:25,360 --> 00:31:29,160
Yeah.
So the so basically what the

532
00:31:29,160 --> 00:31:40,560
situation is, is that this let's
see this lady, I'm going to pull

533
00:31:40,560 --> 00:31:42,680
up the actual information,
right.

534
00:31:43,160 --> 00:31:48,360
So it's, it's a, it's AI can,
which if you're not familiar

535
00:31:48,360 --> 00:31:52,960
with I can, it's the investor
choice advocates network, a non

536
00:31:52,960 --> 00:31:58,160
profit public interest law firm
that really was getting started.

537
00:31:58,160 --> 00:32:01,920
It, it, it works in the Gray in
the, the sort of new areas of

538
00:32:01,920 --> 00:32:07,640
crowdfunding some crypto, the
overreach of FINRA into broker

539
00:32:07,640 --> 00:32:11,640
dealers and how they're, how
they will challenge broker

540
00:32:11,640 --> 00:32:15,200
dealers and cause undue harm,
you know, different things.

541
00:32:15,200 --> 00:32:17,640
That's, that's pretty much where
they fall.

542
00:32:18,080 --> 00:32:22,160
And it's so this is a landmark
lawsuit case that's challenging.

543
00:32:22,480 --> 00:32:24,920
Well, they consider the
unconstitutional barrier that

544
00:32:24,920 --> 00:32:29,120
blocks experts from investing in
their own fields while reserving

545
00:32:29,120 --> 00:32:31,120
opportunity for the wealthy
fewer few.

546
00:32:31,120 --> 00:32:36,320
So she wasn't she wasn't part of
the fun, but they're using that

547
00:32:36,600 --> 00:32:41,480
2020 rule that says that people
can't that you know, that that

548
00:32:41,720 --> 00:32:45,440
it should it's too narrowly
applied that she should have

549
00:32:45,440 --> 00:32:50,040
qualified for it.
And it really, I guess it looks

550
00:32:50,040 --> 00:32:54,480
like it goes into two different
plaintiffs as part of it that,

551
00:32:54,480 --> 00:32:56,960
you know, that there's this
arbitrary wealth and income test

552
00:32:56,960 --> 00:32:59,240
harms both investors and the
entrepreneurs.

553
00:32:59,600 --> 00:33:05,000
So I gosh, her last name is
Emily Kazoo.

554
00:33:05,360 --> 00:33:07,520
Are you good at this kind of Kev
Zuka which?

555
00:33:08,560 --> 00:33:12,000
I'm not that good.
Emily K Emily KA, seasoned

556
00:33:12,000 --> 00:33:16,040
healthcare leader with a
master's degree in Applied

557
00:33:16,040 --> 00:33:22,080
Economics, is she's over trusted
to oversee multi $1,000,000

558
00:33:22,080 --> 00:33:25,480
budgets and guide life saving
programs for the company that he

559
00:33:25,480 --> 00:33:29,000
worked from.
So she sought to invest her own

560
00:33:29,000 --> 00:33:33,240
savings in the healthcare shares
venture capital fund.

561
00:33:33,800 --> 00:33:37,640
So she was investing in a
venture capital fund and she was

562
00:33:37,640 --> 00:33:43,080
told she wasn't qualified.
Her net worth is $850,000, so

563
00:33:43,080 --> 00:33:45,520
just shy of the $1,000,000 cut
off.

564
00:33:46,560 --> 00:33:51,840
And she's qualified to serve as
the CEO of a healthcare company,

565
00:33:52,160 --> 00:33:55,280
but isn't barred from investing
in the very fund that she

566
00:33:55,280 --> 00:34:00,360
believes in.
And so, oh, and the fund itself,

567
00:34:00,760 --> 00:34:04,320
OK, so the health, the fund
itself is the second plaintiff

568
00:34:05,240 --> 00:34:07,240
in this.
So it's the investor and the

569
00:34:07,240 --> 00:34:11,800
fund that are suing the SEC.
It is as a public benefit Corp

570
00:34:11,840 --> 00:34:15,400
is dedicated to financing
medical innovation, including

571
00:34:15,400 --> 00:34:16,880
research and new treatments and
cures.

572
00:34:16,880 --> 00:34:19,840
Its leaders builds, built the
fund not only to generate

573
00:34:19,840 --> 00:34:22,920
returns, but to tackle urgent
challenges in American

574
00:34:22,920 --> 00:34:26,360
healthcare.
Yet the SEC's rule prevents them

575
00:34:26,360 --> 00:34:30,400
from raising capital from
experts in, like Emily, you want

576
00:34:30,400 --> 00:34:33,880
to contribute both financially
and with their experience.

577
00:34:34,719 --> 00:34:38,840
So, you know, they're standing
up to this outdated rule, ones

578
00:34:38,840 --> 00:34:41,360
that blocks partnership,
partnerships between innovators

579
00:34:41,360 --> 00:34:45,080
and the professionals that are
best positioned to support them.

580
00:34:45,080 --> 00:34:49,199
So I can see, you know, good
grounds.

581
00:34:49,199 --> 00:34:51,480
They're part of the common sense
of this.

582
00:34:51,480 --> 00:34:54,480
And is the thing that is part of
the legislative action that's

583
00:34:54,480 --> 00:34:59,320
working its way through the
Senate and the House is that it

584
00:34:59,320 --> 00:35:03,680
divides America into two classes
where the wealthy get access to

585
00:35:03,680 --> 00:35:06,280
the opportunities that can
produce larger returns on

586
00:35:06,280 --> 00:35:10,400
investment while everybody else
gets shut out on those.

587
00:35:10,720 --> 00:35:14,280
Even though back to the caveat
that, you know, crowdfunding,

588
00:35:14,840 --> 00:35:17,360
you know, all the different
platforms, other than the fact

589
00:35:17,360 --> 00:35:23,320
that you can only do $2000 into
a company or $10,000 in a year

590
00:35:23,320 --> 00:35:24,880
unless you qualify as
accredited.

591
00:35:24,880 --> 00:35:27,720
It's just weird that, you know,
that's a Gray area that they

592
00:35:27,720 --> 00:35:30,640
should, you know, could be able
to address.

593
00:35:30,960 --> 00:35:33,880
But it, you know, there's when,
like you said at the very

594
00:35:33,880 --> 00:35:36,680
beginning, you know, they don't
keep anybody from going and

595
00:35:36,680 --> 00:35:40,720
throwing 20 grand into a crypto
ICO that could lose all its

596
00:35:40,720 --> 00:35:47,200
value or going to truly gamble
at on the the crap tables or

597
00:35:47,560 --> 00:35:52,600
putting, you know, $2000 a month
into lottery tickets, right?

598
00:35:52,600 --> 00:35:55,640
So why would they?
Why do they limit your ability

599
00:35:55,640 --> 00:35:59,080
to put your money at risk if
that's what you want to do?

600
00:36:00,400 --> 00:36:08,240
Yeah, the the SEC kind of every
now and then gets a little

601
00:36:08,240 --> 00:36:11,240
carried away.
Well, I think that it's easier

602
00:36:11,240 --> 00:36:17,040
to not change something because
accredited investors, you know,

603
00:36:17,040 --> 00:36:21,200
you think about the heartburn.
Oh my God, the heartburn that

604
00:36:21,200 --> 00:36:28,640
people got over that over Reg CF
and even to this day when I

605
00:36:28,640 --> 00:36:33,880
talked to accredited investors,
I was talking to a, a, an Angel

606
00:36:33,880 --> 00:36:37,760
group that does BioMed And I,
there's a company that I've

607
00:36:37,760 --> 00:36:42,280
invested in that has a treatment
for cancer that is proven to

608
00:36:42,280 --> 00:36:45,160
work in animals.
And they're raising the capital

609
00:36:45,160 --> 00:36:49,280
to finish the, the clinical
testing on that.

610
00:36:49,280 --> 00:36:53,600
So we can actually go to market
as a, for animal solution while

611
00:36:53,600 --> 00:36:55,200
they work through FDA approval
for human.

612
00:36:55,520 --> 00:36:59,960
But it is a, it is a targeted
treatment to destroy cancer

613
00:36:59,960 --> 00:37:01,240
tumors.
OK.

614
00:37:01,240 --> 00:37:05,280
And it's been proven in rats,
cats, dogs, you know, all that

615
00:37:05,280 --> 00:37:09,160
stuff, right?
And so I told him it's, you

616
00:37:09,160 --> 00:37:12,000
know, it's a BioMed biotech,
this is, you know, game changer

617
00:37:12,000 --> 00:37:13,040
stuff.
It's proven.

618
00:37:13,040 --> 00:37:18,160
And he was like, Oh no, they're
raising capital on a Reg CF We

619
00:37:18,160 --> 00:37:21,760
would never touch that.
And The thing is, is that, you

620
00:37:21,760 --> 00:37:25,840
know, the thing about Reg CF or
most of these and even what you

621
00:37:25,840 --> 00:37:28,840
were describing, where people
could come together, they don't

622
00:37:28,840 --> 00:37:31,360
want to put 25K into something,
but they could come together.

623
00:37:31,360 --> 00:37:35,120
They create special purpose
investment vehicles, LLC's or

624
00:37:35,120 --> 00:37:40,160
LLP's that that do that service.
And they have one voting bloc.

625
00:37:40,400 --> 00:37:42,160
They don't all individually
vote.

626
00:37:42,160 --> 00:37:46,040
They vote together as a bloc and
so, you know, as common

627
00:37:46,040 --> 00:37:50,080
shareholder shareholders.
So it's, you know, that's just,

628
00:37:50,120 --> 00:37:56,480
that's the FUD that came out in
2012 that, you know, somebody

629
00:37:56,480 --> 00:38:00,280
put in 2550 K or an Angel group
putting 250K in didn't want to

630
00:38:00,280 --> 00:38:03,920
have somebody that put $1000 in,
you know, influencing this

631
00:38:03,920 --> 00:38:06,280
company that they put a bunch of
money in.

632
00:38:06,960 --> 00:38:09,160
Yeah.
Stock handle that.

633
00:38:09,880 --> 00:38:12,720
Yeah.
You know, one of the things is

634
00:38:12,720 --> 00:38:15,920
the SEC is looking looking at
loosening the rules requiring

635
00:38:16,440 --> 00:38:19,120
companies that raise capital
from verifying accredited

636
00:38:19,120 --> 00:38:23,800
investor status.
In situations like that,

637
00:38:24,080 --> 00:38:27,200
investors will not have to fill
out the very long and detailed

638
00:38:28,000 --> 00:38:31,760
subscription agreement documents
or questionnaires to verify that

639
00:38:31,760 --> 00:38:35,080
they are accredited investor.
That's crazy.

640
00:38:35,520 --> 00:38:37,600
Yeah, it's that hard.
Anybody.

641
00:38:37,640 --> 00:38:39,400
It's easy.
It's like really, really easy.

642
00:38:39,400 --> 00:38:42,360
Except for five O 6C, you know,
that's the only one that

643
00:38:42,360 --> 00:38:45,000
requires any special hoops to
jump through.

644
00:38:45,000 --> 00:38:48,200
Everything else, you just sign a
check some boxes and sign a

645
00:38:48,200 --> 00:38:49,560
form.
It's all self certified

646
00:38:49,960 --> 00:38:52,200
companies.
Companies are only obligated to

647
00:38:52,200 --> 00:38:57,520
get to get this form signed, you
know, and so it's weird because

648
00:38:57,520 --> 00:39:02,840
and I think the companies on Reg
CF verify, you know, that

649
00:39:02,840 --> 00:39:04,880
whether they're accredited or
unaccredited.

650
00:39:04,880 --> 00:39:08,040
And I think in that case, a lot
of times it's self-serving as

651
00:39:08,040 --> 00:39:11,320
well.
They don't do a, they don't do

652
00:39:11,320 --> 00:39:17,120
anything to try to get you to.
I don't think they do anything

653
00:39:17,120 --> 00:39:20,400
to verify your income statements
that says you're accredited or

654
00:39:20,400 --> 00:39:24,560
not when you're on Reg CF It's
just are you accredited or not

655
00:39:26,000 --> 00:39:28,600
and if you don't want to go
through the trouble of providing

656
00:39:28,600 --> 00:39:31,680
the paperwork then you just are
limited in how much you can

657
00:39:31,680 --> 00:39:34,480
invest in the given company.
Well, it's not like they make

658
00:39:34,480 --> 00:39:37,080
you to attach your bank or
brokerage statement to these

659
00:39:37,080 --> 00:39:39,800
forms to prove it, right?
Right, The only.

660
00:39:39,800 --> 00:39:43,000
One is on The Reg AT-506-C now.
I don't know about.

661
00:39:43,800 --> 00:39:48,200
I think reggae plus.
Probably depends on if the

662
00:39:48,200 --> 00:39:52,520
company's going through a portal
and I think it's also self self,

663
00:39:53,240 --> 00:39:55,560
you know, self certifying on
that as well.

664
00:39:55,560 --> 00:39:58,480
If the investor lies, the
investor lies the entrepreneur

665
00:39:58,640 --> 00:40:00,720
that their requirement.
Yeah, that's the investor

666
00:40:00,720 --> 00:40:05,040
committing fraud.
You know, the investor lies and

667
00:40:05,040 --> 00:40:07,360
the company should not be held
liable, right.

668
00:40:07,360 --> 00:40:10,120
Although there's enterprise and
attorneys that try to try to

669
00:40:10,120 --> 00:40:12,520
make that case.
Look, we were talking briefly

670
00:40:12,520 --> 00:40:15,320
about what's called here the
equal opportunity for all

671
00:40:15,320 --> 00:40:17,560
investors.
Yeah, Act.

672
00:40:18,400 --> 00:40:23,040
The Senate or the House bill?
That's the House bill.

673
00:40:23,040 --> 00:40:26,680
It was that passed the House.
It's, I think, have been sent to

674
00:40:26,680 --> 00:40:29,080
the Senate, but it was, I
thought.

675
00:40:29,640 --> 00:40:31,480
Oh, did it pass out?
Because I thought it was it just

676
00:40:31,480 --> 00:40:34,320
passed committee but it hadn't
actually gone.

677
00:40:34,440 --> 00:40:37,240
Is it gone all the way through?
Yes, I think it's going all the

678
00:40:37,240 --> 00:40:38,720
way through based upon what I
read.

679
00:40:39,280 --> 00:40:45,240
It was bipartisan legislation
led by Sarah McBride, Mike

680
00:40:45,240 --> 00:40:50,080
Flood, Mike Lawler and Cleo
Fields, You know, both

681
00:40:50,080 --> 00:40:54,360
Republicans and Democrats there.
We support this.

682
00:40:54,360 --> 00:41:00,840
It would also allow individual
investors to take a test, pass a

683
00:41:00,840 --> 00:41:02,400
test and claim they're
accredited.

684
00:41:03,000 --> 00:41:07,520
I support this.
I've got, you know, family

685
00:41:07,520 --> 00:41:11,800
members, a big family, but you
know, never gone to college,

686
00:41:12,560 --> 00:41:16,240
self educated on investing and
analyzing financial statements.

687
00:41:16,240 --> 00:41:18,800
And they're, they're smart.
They know what they're talking

688
00:41:18,800 --> 00:41:21,280
about.
They, they read that stuff, you

689
00:41:21,280 --> 00:41:24,240
know, they, they can discuss it
with the best of them at times,

690
00:41:25,200 --> 00:41:28,040
you know, they, they can
evaluate whether it's an

691
00:41:28,040 --> 00:41:30,000
appropriate investment for
themselves or not.

692
00:41:30,960 --> 00:41:33,080
You know, it doesn't mean that
they're going to go out there

693
00:41:33,080 --> 00:41:37,000
and get involved in the most
complex transactions or try and

694
00:41:37,000 --> 00:41:40,560
understand, you know, defy and,
and how blockchain technology

695
00:41:40,560 --> 00:41:42,480
and which cryptocurrency is
going to benefit.

696
00:41:43,080 --> 00:41:45,320
But they can understand what
they're being shown and decide

697
00:41:45,320 --> 00:41:47,400
whether it's acceptable or not
for themselves.

698
00:41:48,160 --> 00:41:51,120
They're big, yeah.
I thought, I wonder how they're

699
00:41:51,240 --> 00:41:53,880
they could ever create a test
for that because, you know, when

700
00:41:53,880 --> 00:41:57,880
it comes to securities, there's,
it's, it's like a yes and no.

701
00:41:57,880 --> 00:42:01,000
It's very, you know, you, there
are some calculations for your

702
00:42:02,040 --> 00:42:06,360
series 63 that you have to do.
And when I was studying for that

703
00:42:06,360 --> 00:42:11,480
test, it was strange to me that
I had to calculate all this

704
00:42:12,440 --> 00:42:17,520
international finance kind of
stuff and, you know, things that

705
00:42:17,520 --> 00:42:21,440
I would never be involved in.
But that, you know, because at

706
00:42:21,440 --> 00:42:23,960
the time we were when we were
looking at being a part of that

707
00:42:24,120 --> 00:42:28,160
broken dealer, I was looking,
you know, to get the license so

708
00:42:28,160 --> 00:42:33,280
that I could just do what wasn't
allowed at the time, you know,

709
00:42:33,280 --> 00:42:35,160
what, what, what is now.
OK.

710
00:42:35,160 --> 00:42:37,480
But back then, because we didn't
have, you know, general

711
00:42:37,480 --> 00:42:40,520
solicitation and equity ground
funding, you know, it was really

712
00:42:40,520 --> 00:42:43,400
hard to be able to solicit for
capital.

713
00:42:43,760 --> 00:42:49,120
And so it was that was the thing
that I thought there was, you

714
00:42:49,120 --> 00:42:55,000
know, so much and like what you
just described, you know, you,

715
00:42:55,560 --> 00:43:00,960
you can't, you will never be
able to create a test that test

716
00:43:00,960 --> 00:43:04,920
people for their industry
knowledge, their ability to

717
00:43:05,160 --> 00:43:09,840
discern engineering to, you
know, will this work, you know,

718
00:43:09,840 --> 00:43:12,560
kind of things.
There's just, there's no,

719
00:43:12,600 --> 00:43:14,120
because it's constantly
changing.

720
00:43:14,160 --> 00:43:16,280
So there is no way to do a test
on that.

721
00:43:16,280 --> 00:43:20,680
So unless it's just read, you
know, understanding basic

722
00:43:20,680 --> 00:43:24,160
business principles of go to
market intellectual property,

723
00:43:24,520 --> 00:43:28,920
how to read a financial
statement, how to you know, you

724
00:43:28,920 --> 00:43:32,840
know, the IT seems like it's
going to be really difficult to

725
00:43:32,840 --> 00:43:33,680
create a test.
It's.

726
00:43:34,120 --> 00:43:36,880
Going to be difficult to create
a test on specific industry

727
00:43:36,880 --> 00:43:40,560
knowledge, but it will be very
easy to create a lighter version

728
00:43:40,560 --> 00:43:46,760
of the series 79 or whatever the
heck it was way back when.

729
00:43:46,760 --> 00:43:53,280
The for the general solicitation
and and as someone who took

730
00:43:53,280 --> 00:43:59,080
those tests and passed them, I I
can tell you you could easily

731
00:43:59,080 --> 00:44:03,040
construct a test that gets into
the principles of bonds.

732
00:44:04,160 --> 00:44:07,200
When interest rates go up, what
happens to the price of a bond?

733
00:44:08,440 --> 00:44:10,680
Very simple.
It's the teeter totter effect.

734
00:44:10,680 --> 00:44:12,040
One goes up, the other goes
down.

735
00:44:12,640 --> 00:44:16,720
You know, you can get, you could
get a test out there that says,

736
00:44:17,200 --> 00:44:20,400
is the person soliciting the
investment doing it right or

737
00:44:20,400 --> 00:44:22,760
doing it wrong?
You know, what can they can and

738
00:44:22,760 --> 00:44:24,960
they can.
What can they legally promise

739
00:44:24,960 --> 00:44:26,920
you and what can they legally
not?

740
00:44:28,240 --> 00:44:34,280
Not legally promised.
I think the idea of proposing a

741
00:44:34,280 --> 00:44:37,560
test would be very beneficial
whether the test ever got off

742
00:44:37,560 --> 00:44:39,800
the ground or not.
Just the idea of getting the

743
00:44:39,800 --> 00:44:42,680
conversation going, you know,
for the people would be like, I

744
00:44:42,680 --> 00:44:44,800
want to know this and get it
out.

745
00:44:44,800 --> 00:44:46,360
There.
Yeah.

746
00:44:46,400 --> 00:44:48,680
Well, that's the thing when
building this Compassion List

747
00:44:48,680 --> 00:44:53,800
Academy as a training to teach
people how to, you know, be

748
00:44:53,800 --> 00:44:55,720
smart about building a
portfolio, whether it's

749
00:44:55,720 --> 00:44:59,160
crowdfunding or Angel investing
of deals that you're investing

750
00:44:59,160 --> 00:45:03,120
in that are private or building
a hybrid model, which is my, you

751
00:45:03,120 --> 00:45:06,880
know, what I advocate in the
Angel profitability blueprint is

752
00:45:07,360 --> 00:45:10,240
company, you know, some portion
of it, depending on your risk

753
00:45:10,360 --> 00:45:16,520
reward profile is, is, you know,
income producing their their

754
00:45:16,520 --> 00:45:19,080
fixed term loan, their revenue
share.

755
00:45:19,080 --> 00:45:23,080
So, you know, you have income
coming back in as a result of

756
00:45:23,080 --> 00:45:25,600
that makes you feel comfortable
that your stuff, because one of

757
00:45:25,600 --> 00:45:27,760
the problems that a lot of
people do when they get started

758
00:45:27,760 --> 00:45:31,320
in this kind of investing, they
invest it's like 3 and done

759
00:45:31,760 --> 00:45:33,400
right.
It's like this psychological

760
00:45:33,840 --> 00:45:37,240
says they can do 3IN a year.
And so then they're going to be

761
00:45:37,240 --> 00:45:39,280
like, OK, let me see how they do
right.

762
00:45:39,280 --> 00:45:42,880
And that's a kiss of death in my
opinion, because you have to

763
00:45:42,880 --> 00:45:45,680
build a broad portfolio.
The most successful Angel

764
00:45:45,680 --> 00:45:49,640
investors, like when we
interviewed a signal, right?

765
00:45:50,080 --> 00:45:52,640
You know, what was it 90
companies or something, right?

766
00:45:52,640 --> 00:45:57,080
And so, you know, they're you
can, you can handle the losses

767
00:45:57,080 --> 00:46:00,240
when you have big wins that make
up for those, which is the

768
00:46:00,240 --> 00:46:03,280
premise behind, you know,
venture capital, you know, 10

769
00:46:03,280 --> 00:46:06,280
company thing, but and then
later stage, right, different

770
00:46:06,280 --> 00:46:10,480
industries, different types of
deals, convertible nodes, you

771
00:46:10,480 --> 00:46:14,280
know, reggae plus it's on its
way to an exit strategy.

772
00:46:14,560 --> 00:46:20,080
You know, you build a portfolio
that's diverse in stage industry

773
00:46:20,080 --> 00:46:24,160
and type of deal and you, you
would significantly increase

774
00:46:24,160 --> 00:46:28,480
your odds of success out the
gate if you have a strategy to

775
00:46:28,480 --> 00:46:30,960
go after that way.
And and so, you know, I'm

776
00:46:30,960 --> 00:46:33,440
watching it very closely because
I want to make sure whatever I

777
00:46:33,440 --> 00:46:37,520
put into this training going
forward maps to whatever they're

778
00:46:37,520 --> 00:46:40,160
talking about as being a part of
this.

779
00:46:40,160 --> 00:46:44,880
So my course, the compassionless
Academy can become a proven, you

780
00:46:44,880 --> 00:46:48,440
know, like here's a, you know,
Betty Crocker seal SEC seal of

781
00:46:48,440 --> 00:46:51,000
approval, take this course, pass
the test at the end.

782
00:46:51,360 --> 00:46:55,520
And you know, we'll be offering
before they'll a certificate of

783
00:46:55,520 --> 00:46:57,560
completion.
Make people feel good.

784
00:46:57,760 --> 00:47:00,760
But you know, it's you know,
that's the whole thing that, you

785
00:47:00,760 --> 00:47:03,520
know, I'm watching it because I
think, you know, they're it.

786
00:47:03,520 --> 00:47:06,880
It could very well in that way.
Here, here's the other thing.

787
00:47:07,480 --> 00:47:10,080
So when I come in from the
corporate side hadn't advised

788
00:47:10,080 --> 00:47:13,880
inside a inside a company, one
of the things I tell every

789
00:47:13,880 --> 00:47:16,480
client is always be prepared to
raise capital.

790
00:47:17,200 --> 00:47:19,760
And one of the things that you
and I have talked about

791
00:47:20,720 --> 00:47:24,440
consistently, particularly in
our earlier podcast, we talked

792
00:47:24,440 --> 00:47:26,240
about the capital raising
ladder.

793
00:47:26,840 --> 00:47:30,240
You know, you self fund friends
and family, you're you're

794
00:47:30,240 --> 00:47:34,080
constantly widening that base
and moving up what we call the

795
00:47:34,080 --> 00:47:39,840
capital raising ladder food
chain, you know, Reg CF or

796
00:47:39,840 --> 00:47:43,840
reggae plus a crowdfunding.
That may not be the be all end

797
00:47:43,840 --> 00:47:47,760
all of things, but it gets you
to the next level.

798
00:47:48,120 --> 00:47:51,320
And if you're always keep
focused on that and you're aware

799
00:47:51,320 --> 00:47:55,360
that you have a larger pool of
investors and you constantly be

800
00:47:55,360 --> 00:47:59,360
working towards a higher, you
know, higher up that that ladder

801
00:47:59,360 --> 00:48:02,960
on the capital raise process,
you dramatically increased the

802
00:48:02,960 --> 00:48:04,760
chances of your business
succeeding.

803
00:48:05,840 --> 00:48:10,640
I know that personal experience.
You know, one of my biggest

804
00:48:10,640 --> 00:48:15,600
winners was a company their
original product somewhat failed

805
00:48:15,840 --> 00:48:20,440
and they came up with a stopgap
product that kept the lights on

806
00:48:20,440 --> 00:48:22,480
until they developed a better
product.

807
00:48:23,000 --> 00:48:26,040
And that company has done
phenomenally well and they're

808
00:48:26,040 --> 00:48:30,240
probably going to do, you know,
very well this year and have an

809
00:48:30,240 --> 00:48:34,000
even better record next year.
I know we're getting a little

810
00:48:34,000 --> 00:48:36,480
short on time here, so.
Yeah.

811
00:48:37,240 --> 00:48:39,720
So I think this has been, I
mean, it's watch this space,

812
00:48:39,720 --> 00:48:43,280
everybody that's out there, you
know, listening to us today

813
00:48:43,280 --> 00:48:46,400
throw comments and all the
things, send us a message on

814
00:48:46,400 --> 00:48:49,960
LinkedIn, whatever you've got
ideas, questions that you see,

815
00:48:49,960 --> 00:48:52,120
something you see in the news
that you want us to talk about.

816
00:48:52,480 --> 00:48:56,200
Happy to take that on.
You know, Eric and I love

817
00:48:56,200 --> 00:48:59,920
talking about capital and
helping companies get capital so

818
00:48:59,920 --> 00:49:03,920
that they can achieve all their
hopes and dreams doing it the

819
00:49:03,920 --> 00:49:07,880
right way.
And also for people to, you

820
00:49:07,880 --> 00:49:12,360
know, people that traditionally
have been left out of a lot of

821
00:49:12,360 --> 00:49:16,480
these wealth creation strategies
to be able to use them to leap

822
00:49:16,880 --> 00:49:20,080
the wealth gap and, you know,
start to create financial

823
00:49:20,080 --> 00:49:24,480
independence and security for
their retirement in ways that,

824
00:49:24,800 --> 00:49:27,200
you know, they're investing on
the ground floor because these

825
00:49:27,200 --> 00:49:30,160
companies are using that money
to build the next big thing.

826
00:49:30,640 --> 00:49:31,760
Yes.
And remember, if you're going to

827
00:49:31,760 --> 00:49:35,240
look at private companies and do
these, these investments, you

828
00:49:35,240 --> 00:49:37,720
got to plan on being able to
spread your money out over a

829
00:49:37,720 --> 00:49:40,920
good 11:50 companies, you're
going to have a couple that

830
00:49:40,920 --> 00:49:42,480
fail.
You're going to have a bunch to

831
00:49:42,480 --> 00:49:45,920
do so.
So and out of 10 companies, you

832
00:49:45,920 --> 00:49:51,000
should have two that really,
really make you all your money

833
00:49:51,000 --> 00:49:55,720
and, and make it all worth it.
And if you're doing more than

834
00:49:56,080 --> 00:49:58,800
20%, you're doing something
really right.

835
00:49:59,320 --> 00:50:03,560
So yeah, success.
If you got a success story, send

836
00:50:03,560 --> 00:50:05,200
it to me.
I'd love to talk to you about

837
00:50:05,200 --> 00:50:08,480
it.
Yep, we I actually did the math.

838
00:50:08,480 --> 00:50:12,800
It's it's I conclude this book
inside secrets to crowdfund

839
00:50:12,800 --> 00:50:17,320
investing and I've done so a
couple of podcasts or clips on

840
00:50:17,320 --> 00:50:21,840
it because I heard this first
when Jason O'Connor, some of our

841
00:50:21,840 --> 00:50:24,760
audience will listen to that he
wrote know who he is.

842
00:50:24,760 --> 00:50:29,760
He's one of the he has a big
podcast he wrote on the wings of

843
00:50:29,760 --> 00:50:35,920
angels about his experience
investing in Uber and and he was

844
00:50:35,920 --> 00:50:39,920
interviewing the head of the
founder of seed invest back

845
00:50:39,920 --> 00:50:43,520
years ago before it got bought
and became start engine.

846
00:50:43,880 --> 00:50:49,440
And and he said, you know, if I
could go back and talk to my 20

847
00:50:49,440 --> 00:50:53,520
something self, I would tell
myself, knowing what I know now,

848
00:50:53,520 --> 00:50:56,080
I wouldn't have started that
first company right out of

849
00:50:56,080 --> 00:50:58,640
college.
I would have gone and got a

850
00:50:58,640 --> 00:51:02,560
corporate gig and on their
dollar learned what worked and

851
00:51:02,560 --> 00:51:05,480
didn't work in corporations
instead of figuring it out by

852
00:51:05,480 --> 00:51:08,600
doing it wrong and missing and
this kind of a stuff for my

853
00:51:08,600 --> 00:51:10,960
first five years.
And even though they weren't

854
00:51:10,960 --> 00:51:14,640
going to and they they talk
about, you know, matching

855
00:51:14,640 --> 00:51:17,480
MY4O1K, but I was going to be
there five years.

856
00:51:17,480 --> 00:51:20,360
So what I would do instead,
instead of putting in a four O 1

857
00:51:20,360 --> 00:51:25,160
Ki would put I would put $500 a
month into a Reg CF company

858
00:51:25,160 --> 00:51:27,400
without thinking a lot about it.
Just something I thought it was

859
00:51:27,400 --> 00:51:29,440
cool and neat and it looked like
it looked good.

860
00:51:29,440 --> 00:51:31,480
They had some basics and stuff
like that.

861
00:51:31,480 --> 00:51:34,960
And I would just I would just do
that and I would be, you know,

862
00:51:34,960 --> 00:51:38,680
so far, so much further ahead
than the four O 1 Ki was like,

863
00:51:39,080 --> 00:51:42,120
OK, what's that like?
Let me see if I can do the math

864
00:51:42,120 --> 00:51:44,560
on that.
So and see what he if he's

865
00:51:44,560 --> 00:51:46,320
talking about it.
Well, it actually works out that

866
00:51:46,320 --> 00:51:50,600
it's it's actually listen, the
number seven 6 * 48.

867
00:51:50,600 --> 00:51:56,360
It's seven times more profitable
than a four O 1K to do invest in

868
00:51:56,920 --> 00:52:00,880
a Reg CF company, $500 a month,
five years even with 18

869
00:52:00,880 --> 00:52:03,320
companies failing.
And I, I did that because you

870
00:52:03,320 --> 00:52:06,360
got, if you want to do the one,
you want to hear the math, Eric.

871
00:52:06,760 --> 00:52:12,760
I do want to hear the math.
Okay, so if you do so it's 60

872
00:52:12,760 --> 00:52:19,480
companies, 512 * 5 and out of
that, so you got six sets of 10.

873
00:52:19,760 --> 00:52:24,000
So using the venture capital
formula that one will do 10X2,

874
00:52:24,000 --> 00:52:28,600
will do 5X2, will do 2X3, will
break even and three will go out

875
00:52:28,600 --> 00:52:31,680
of business.
OK, So using that pretty

876
00:52:31,680 --> 00:52:34,240
acceptable by most people's
standards that are in the space,

877
00:52:34,600 --> 00:52:36,760
right?
The math comes out that if you

878
00:52:36,760 --> 00:52:41,640
got your 9% of what is the
typical 4O1K, you're going to

879
00:52:41,760 --> 00:52:47,960
have 30 thousand $35,600,
$35,900.

880
00:52:48,360 --> 00:52:51,160
But if you do the math on that
and of course it's not coming

881
00:52:51,160 --> 00:52:54,560
back in five years, but that's
the general idea because of

882
00:52:54,560 --> 00:52:56,920
course you'll keep building.
So it's actually gets bigger and

883
00:52:56,920 --> 00:52:58,760
bigger and bigger on a
compounding effect.

884
00:52:59,120 --> 00:53:05,000
But you come back with $78,000.
So it's a $48,000 add on to your

885
00:53:05,000 --> 00:53:08,520
$30,000 initial investment based
on those numbers.

886
00:53:08,520 --> 00:53:12,240
So, you know, without, without a
match about the fees of the four

887
00:53:12,240 --> 00:53:14,160
O 1K and blah, blah, blah, and
all that other kind of stuff

888
00:53:14,160 --> 00:53:18,080
that might be factored in.
So whatever it is just the math,

889
00:53:18,400 --> 00:53:21,280
you know, I teach, you know,
this whole thing of being smart

890
00:53:21,280 --> 00:53:23,600
about it.
But you could just do that.

891
00:53:23,600 --> 00:53:26,120
It'd be like you know better
than buying a lottery ticket

892
00:53:26,120 --> 00:53:29,920
because odds are you put $30,000
into a lottery ticket over the

893
00:53:29,920 --> 00:53:32,880
five years you're not getting
$48,000 back.

894
00:53:32,880 --> 00:53:34,840
No, you're not.
Right.

895
00:53:35,280 --> 00:53:39,800
So, yeah, so, you know, it's
something to think about and

896
00:53:39,800 --> 00:53:43,560
something is just that people
have no idea that this exists as

897
00:53:43,560 --> 00:53:47,680
an ability to invest.
And to Eric's point, you cannot

898
00:53:47,680 --> 00:53:50,360
invest more than you're you can
afford to lose when it comes to

899
00:53:50,360 --> 00:53:52,800
anything.
You know, we don't want you

900
00:53:52,800 --> 00:53:56,080
freaking out as a day trader and
going in and doing something

901
00:53:56,080 --> 00:54:00,920
crazy at, at A at a stoke, a
broker dealer in Buckhead, you

902
00:54:00,920 --> 00:54:04,360
know, kind of a thing.
He and I remember that and and

903
00:54:04,360 --> 00:54:07,960
you don't, you know, it's, it's
one of those things that I have

904
00:54:07,960 --> 00:54:11,880
this calculator in the resources
that came with the first book.

905
00:54:11,880 --> 00:54:15,120
And it's part of the course that
helps you figure out how much

906
00:54:15,120 --> 00:54:19,160
money can you afford to invest
over the next two years, right.

907
00:54:19,160 --> 00:54:21,240
If you divide that up into
things.

908
00:54:21,240 --> 00:54:25,000
So you have a two year plan and
then you can see get to 10

909
00:54:25,000 --> 00:54:29,000
companies in two years.
How much does that work out with

910
00:54:29,000 --> 00:54:31,480
when it comes to investing?
And that's that's what you do.

911
00:54:31,960 --> 00:54:34,800
Yep.
And keep in mind, if you don't

912
00:54:34,800 --> 00:54:37,640
understand the investment, don't
put money into it.

913
00:54:39,280 --> 00:54:41,240
I, I can't, I can't stress that
enough.

914
00:54:41,240 --> 00:54:44,360
If you know if you know if you
don't, if you don't understand

915
00:54:44,360 --> 00:54:46,120
what the investment is, don't
put money into it.

916
00:54:46,440 --> 00:54:48,560
Warren Buffett, invest in what
you know.

917
00:54:49,120 --> 00:54:50,360
Yeah, yeah.
So.

918
00:54:51,560 --> 00:54:54,080
All right, I've enjoyed this
conversation.

919
00:54:54,080 --> 00:54:56,360
What about you, Eric?
This has been a good one.

920
00:54:56,480 --> 00:54:58,040
It's been good.
We're gonna we're gonna get back

921
00:54:58,040 --> 00:55:00,840
on our production schedule.
I have a new producer, so you're

922
00:55:00,840 --> 00:55:03,000
gonna see us posting a lot more
from now on.

923
00:55:04,080 --> 00:55:06,400
All right, terrific.
With that, onwards and upwards.

924
00:55:06,400 --> 00:55:09,280
Thank you everybody for tuning
in and we will see you next time

925
00:55:09,280 --> 00:55:11,000
on the other side.
Yep, see you.

926
00:55:11,360 --> 00:55:15,280
Bye.
Thank you for listening to this

927
00:55:15,280 --> 00:55:18,120
podcast, The Compassionate
Capitalist Show, brought to you

928
00:55:18,160 --> 00:55:22,920
by Cougar and Capital Holdings
with Karen Brands as host.

929
00:55:25,520 --> 00:55:29,680
You are encouraged to visit the
website cougarand.com to learn

930
00:55:29,680 --> 00:55:34,120
more about how Karen and her
team help investors and Angel

931
00:55:34,120 --> 00:55:38,080
groups make money by avoiding
investing in deals that suck,

932
00:55:38,520 --> 00:55:41,920
and how the Cougar and Capital
companies and partners help

933
00:55:42,240 --> 00:55:45,720
entrepreneurs breakthrough their
barriers to capital and live

934
00:55:45,720 --> 00:55:48,120
their dream by building
companies that can scale and

935
00:55:48,120 --> 00:55:52,520
create generational wealth for
their founders and investors.

936
00:55:52,880 --> 00:55:56,920
If your business could benefit
from exposure to our audience of

937
00:55:56,920 --> 00:56:00,040
business executives,
entrepreneurs, and investors, we

938
00:56:00,040 --> 00:56:02,600
are seeking financial partners
and sponsors for the

939
00:56:02,600 --> 00:56:06,120
Compassionate Capitalist Show to
help us take this podcast beyond

940
00:56:06,120 --> 00:56:09,840
our 150,000 listeners and
amplify the message of the

941
00:56:09,840 --> 00:56:14,240
compassionate capitalist
movement by making this a Top 50

942
00:56:14,240 --> 00:56:17,320
business podcast.
The Capacitor Capitalist Show is

943
00:56:17,320 --> 00:56:20,560
available on YouTube, Apple
podcast, iTunes, TuneIn,

944
00:56:20,560 --> 00:56:23,920
Stitcher, Spotify, Pandora, and
Google podcast.

945
00:56:24,320 --> 00:56:27,560
Contact us at karenrand.co to
learn more.

946
00:56:27,920 --> 00:56:30,880
And as a listener, you can do
your part of the compassionate

947
00:56:30,880 --> 00:56:33,880
Capitalist movement by
subscribing wherever you listen

948
00:56:33,880 --> 00:56:38,520
to podcasts and sharing this
show with your friends and

949
00:56:38,520 --> 00:56:41,920
colleagues.
Be sure to pick up your copy of

950
00:56:41,960 --> 00:56:45,200
Karen's bestseller that launched
the Compassionate Capitalist

951
00:56:45,200 --> 00:56:47,400
movement.
Inside secrets to Angel

952
00:56:47,400 --> 00:56:50,560
investing.
A step by step strategies to

953
00:56:50,560 --> 00:56:53,640
leverage private equity
investment for passive wealth

954
00:56:53,640 --> 00:56:56,920
creation.
Thank you for listening.