crowdability THE GREATEST WEALTH- BUILDING OPPORTUNITY OF OUR GENERATION On May 16, 2016, U.S. House of Representatives Bill H.R. 3606 will go into effect, ushering in one of the greatest wealth-generating opportunities of our lifetime. Overnight, millions of Americans like you will have the potential to get rich. And you have just a few short months to prepare...
Over the past two years, nearly 100,000 people have subscribed to our free newsletter. And each week, hundreds of regular investors just like you write us and tell us about their financial problems. They say things like... I listened to the wrong advice, lost a lot of money, and now I m just trying to figure out how I can still retire on time... Or, I m retired and I had a small nest egg saved up, but then I lost it all in 2008 and have been trying to make it back ever since... Or, I did everything I was supposed to I saved my money, I invested it in blue chips and dividend stocks, but I still don t have enough to retire comfortably one big medical expense and I m back to work. If these statements sound familiar, it s important that you understand something: IT S NOT YOUR FAULT! That s right: it s not your fault that you haven t reached your financial goals. When it comes to financial advice in this country, you were sold a fake bill of goods. You were told that if you worked hard, saved your money, and invested in a portfolio of stocks, bonds, and mutual funds, you d be able to retire comfortably. But if you look at the historical returns of the stock and bond markets and you do the math, it becomes painfully clear that earning an average of 4% or 5% per year just isn t going to give you the retirement you deserve. Maybe you tried to speculate a bit and bought some small-cap stocks... Or based on the advice of some guru newsletter analyst, you tried to trade options. But as you ve probably learned over the years, none of these strategies work. The thing is, if you look at professional investors now I m talking about large institutions like pension plans and hedge funds and you study how they manage their money, you ll quickly realize something: 1
Their investment strategy isn t about buying shares in blue chips, day-trading penny stocks, or trading options They re able to consistently grow their portfolios in good markets and bad because they take an entirely different approach to investing. What is this approach? CNBC: THE BEST RETIREMENT INVESTMENT YOU CAN T HAVE CNBC published a report a few months ago entitled, The Best Retirement Investment You Can t Have. The report claimed, There s an easy way to nearly double the equity return that your 401(k) is generating... It went on to say that, Time and again [this investment] has proven that it s the single-best asset class... Unfortunately, as the report pointed out, as great as this investment vehicle is, it s only for professional investors investors like you just can t have it. But what if you could? What if you could get access to the same exact asset class as the country s largest professional investors? What if you could double the returns you re getting in your 401(k)... in your IRA in your trading account? Well, that s precisely what our report today is all about. THE MOST IMPORTANT DAY IN AMERICA IN 83 YEARS The asset class CNBC is referring to is Private Equity in other words, investments that aren t traded on a public stock exchange like the NYSE or the NASDAQ. 2
For more than 80 years, these investments have been off-limits to all but the wealthiest individuals and institutions. But thanks to a new set of laws known as H.R. Bill 3606 or, as it s more commonly known, The JOBS Act that s all about to change. On October 30, 2015 just a short time ago the SEC passed the final piece of this new law. And in doing so, it set the stage to give you access to the most profitable asset class in history. The private equity markets are set to open their doors on May 16, 2016. On that date, everyone regardless of their income or net worth will be able to take part in these transactions. These investments include real estate, hedge funds, fine art, and most importantly, early-stage high-growth technology companies. For the first time in your life, you ll no longer be forced to settle for the mediocre returns of the stock market... You ll no longer have to rely on complicated trading strategies, or betting the farm on speculative penny stocks... Now you ll be able to invest like the professionals do. You ll be able to invest in companies before they IPO... before the rest of Wall Street even knows they exist. And in doing so, you ll be giving yourself the chance to more than double the returns you ve been getting and you ll finally get your retirement plans back on track. YOU NEED TO GET READY FOR IT This is why we publish a weekly newsletter that goes out to nearly 100,000 individual investors... This is why we host hundreds of free training webinars all year long And this is why we put together this special report. You see, this is an historic opportunity the type of opportunity we ll only experience once or twice in our lifetimes. 3
And the question you need to ask yourself is this: Who do you want to be when May 16th comes around? Do you want to be part of the uninformed, unprepared masses who continue to slog away in the public markets earning low single-digit returns each year? Or do you want to be ready? Do you want to finally get ahead in the world of investments? The choice is yours. If you can recognize the significance of the opportunity in front of you, we re committed to helping you get ready for it. But before we get into the weeds, let s take a step back to review the events that got us here, and to teach you more about this revolutionary new set of laws: The JOBS Act. THE HISTORY OF THE JOBS ACT There were two main inspirations for the creation of The JOBS Act: 1. Job Growth Historically, most new jobs in this country have been created by small businesses. By making it easier for small businesses to raise capital, the government hoped that more businesses would get started and more new jobs would be created. 2. Crowdfunding Over the past several years, an online trend called crowdfunding has emerged. On websites like Kickstarter and Indiegogo, entrepreneurs solicit donations for their projects (e.g., a new toy, video game or film). Those who donate might receive a free version of the product when it ships, or an exclusive screening of a new film. This concept is known as rewards crowdfunding, because contributors receive a reward for their financial support. The downside here is that, if these projects go on to become billion-dollar enterprises, the initial backers won t receive any of the upside. Not a penny. A perfect example of this win/lose scenario happened with a company called Oculus VR. Oculus raised capital on Kickstarter. Two years later, Facebook acquired the company for $2 billion, making its founder extraordinarily wealthy but leaving its Kickstarter backers without a cent. 4
The JOBS Act aims to remedy this with a concept known as equity crowdfunding. Timeline of The JOBS Act: With equity crowdfunding, financial contributors receive equity i.e., an actual ownership stake in the businesses they back. So if a business becomes the next Oculus (or Microsoft or Google), early backers will receive their share of the gains. But in order to make this happen, 83 years of securities laws had to be rolled back. You see, ever since The Great Depression, everyday citizens have been legally prohibited from investing in privately-held securities. Only investors known as accredited investors were allowed to invest in private deals. To be considered accredited, you needed to earn more than $200,000 per year or have a net worth greater than $1 million. But with the passage of the JOBS Act, all that is now changing. On May 16, all citizens, regardless of their income or net worth will be able to invest in high-growth, high-potential early-stage companies. UBER GROWTH It s expected that investor appetite for private deals will be robust. A number of factors are driving this demand: For one, the world s highest-growth companies are staying private longer. Many of them are already worth billions of dollars. And if these companies are already worth billions by the time (click here to see a full-sized image) 5
they go public, it s unlikely you ll see a dramatic increase in their share price after they IPO. In fact, according to Renaissance Capital, the average IPO in 2015 provided a negative return on its first day, falling 3.5%. Recent headlines about highflying start-ups from mainstream press like The Wall Street Journal are helping drive demand, too for example: Airbnb Raises $1.5 Billion in One of Largest Private Placements Alibaba Deal Values Snapchat at $15 Billion Uber Valued at More Than $50 Billion Coincidentally, Uber isn t just one of the fastest growing start-ups in the world today it s also one of the first major equity crowdfunding success stories: In 2010, Uber leveraged a website called AngelList (which is now one of the largest equity crowdfunding platforms) to raise its initial round of funding. At the time, only accredited investors had access to AngelList. But if you d been a member of the site, and had been accredited at the time, you could have invested in Uber when it was still cheap. And here s what that would have done for your portfolio: Uber s Soaring Valuation (click here to see a full-sized image) 6
A $1,000 investment in Uber in 2010 would today be worth an estimated $6 million. You would have earned a 600,000% ROI. That s 6,000 times your money on a single investment. HIGHER RETURNS = HIGHER RISK Stories like Uber s are creating a lot of excitement around early-stage investing. So when the first batch of deals comes online in May, it s widely expected that investors will be eager to dive in. The deals will take place on special websites known as funding platforms. The SEC and the Financial Industry Regulatory Authority (FINRA) will regulate these websites. But will the new regulations do enough to protect investors? Well, during the vote to approve The JOBS Act, the SEC commissioners cited investor protection as a high priority more than a dozen times And the final rules do contain certain protections for example, someone making less than $100,000 per year can invest only 5% of their income into private deals (so if you earn $50,000 per year, you can invest $2,500). But here s the unfortunate truth about these protective provisions: If someone jumps into this market without knowing what they re doing, the SEC s protections will do little more than limit an investor s losses. Furthermore, these regulations do nothing to help investors like you actually make money in this market remember, for those who know what they re doing, the private markets can be extremely lucrative. That s where Crowdability can help... THE MOST PROFITABLE MARKET IN HISTORY 7
According to research firm, ThinkAdvisor, the five most profitable investments of all time occurred in the private markets. At one time, companies like ebay, Facebook and even Coca-Cola were private start-ups. And the investors who had the foresight to get in early made fortunes. For example, Facebook s first investor a man named Peter Thiel made 2,000 times his money when Facebook went IPO. Or take my friend and business partner Howard Lindzon: as Howard recently shared with me, he made 400 times his money on one of his latest private investments. That would be enough to turn every $1,000 into nearly half a million dollars. And to be clear, these early-stage investors like Peter and Howard didn t simply get lucky. They didn t pick one or two deals and hit the lottery. They had a system a reliable process for finding winner after winner. Crowdability has spent the better part of two years studying this system and we recently built a special online course for investors who want to learn about it. It s called Beyond Stocks: Boost Your Returns by 337% Without Touching the Stock Market! You can sign-up to learn more absolutely free right here» In this free training program, you ll learn about: A new type of stock exchange where you ll be able to find the most promising (and profitable) private market deals... You ll also discover how you could boost your portfolio s returns by literally 300% to 400% by getting into these private deals at the right time... And finally, you ll learn the simple three-step process that professional private market investors use to find only the most promising opportunities. This training program will culminate in a live, online webinar where we ll show you a special loophole we ve discovered a loophole that will let you begin investing in private deals just four days from now. All of this training is yours free. 8
But hurry up and register quickly due to limitations with our software, we can only accept 250 attendees per training session, and spots fill up fast. We look forward to seeing you in the webinar. Click here to register now» 9
Disclaimer: This document is made available for general information purposes only. This report does not constitute a specific investment recommendation or advice upon which you should rely based upon, or irrespective of, your personal circumstances. Use of this document is not a substitute for obtaining proper investment advice from an authorized investment professional. Actual results may differ significantly from the results described. Potential retail investors are urged to consult their own authorized investment professional before entering into any investment agreement. Past performance of securities is not necessarily a guide to future performance and the value of securities may fall as well as rise. In particular, investments in the technology sector can involve a high degree of risk and investors may not get back the full amount invested. 10
ABOUT CROWDABILITY Crowdability provides individual investors with education, information and insight into opportunities in the crowdfunding market. Our free website and email newsletter aggregate and organize deals from an ever-expanding universe of crowdfunding platforms. We aim to save people time and simplify the process of discovering and evaluating crowdfunding opportunities. BENEFITS OF JOINING CROWDABILITY Never worry about missing an opportunity - we track them all for you Gain access to education and resources that remove the confusion and anxiety about early-stage investing Hear from professional venture and angel investors to help you better understand the mechanics of early-stage investing and how to identify the best opportunities Crowdability s goal is to become your primary resource for navigating the equity crowdfunding landscape. Contact Us: Crowdability, Inc. 229 West 28th Street 12th Floor New York, NY 10001 www.crowdability.com info@crowdability.com Copyright 2015 Crowdability, Inc. All rights reserved. 11