The First Regulation A+ Deal Reviewed

The First Regulation A+ Deal Tests the Waters By Adam Sharp on June 26, 2015 Dear Early Investor, In last week's article I wrote about the arrival of Regulation A+, which, for the first time since 1933, allows everyday investors in the U.S. to invest in private startups. This past Friday, the very first Reg A+ deals went into preview mode. Called "testing the waters," this period allows investors to indicate interest in a deal. Let's look at a real example. On SeedInvest.com there's a company called WayBetter that is currently testing the waters. WayBetter is a weight loss competition site. Users bet real money and win or lose based on their success. Sounded like a crazy idea at first. My first thought was, "How do they verify that somebody actually lost the weight?" The team found an interesting solution to that. They assign users a "weigh-in word" to be written down and placed next to the scale. With 270,000 paying customers, WayBetter's "DietBet" concept appears to have some legs. So far they say members have lost more than 2.9 million pounds, and winners have been paid out to the tune of more than $12 million... So now that you know a little bit about the company, you can indicate if you're interested in investing. It's non-binding, no strings attached. Here's a screenshot of what that looks like on SeedInvest: The reason for this necessary "preview" step is simple: It costs a lot of money to file all the paperwork for a Reg A+ deal. So companies want at least an indication that there will be enough interest to justify the cost. The Biggest Monetary Event... Since the Age of Jesus A historic event will soon transform the world's money supplies. Dollar... yen... euro... ruble... yuan... One event will impact more than 70 major currencies. According to scholars, it will mark the biggest monetary revolution since the time of Jesus, some 2,000 years ago. When it hits later this year, some investors stand to get very rich. Others could lose their life savings overnight. For details on how to navigate this historic event, please go here now. FROM A SPONSOR So far investors have indicated more than $10 million worth of interest in the deal on SeedInvest. That's certainly a good start... The Missing Piece Overall I'd say this proposed Reg A+ deal looks pretty good, especially considering it's one of the first ever. I'm disappointed, however, that there isn't any financial data (yet). No revenue numbers, not even a valuation for the company. Without knowing how much the company is worth, it's impossible to judge whether or not the deal is a good investment. I can understand why WayBetter wouldn't want to divulge this information yet, as they don't even know if they'll get enough interest to justify filing the Reg A+ paperwork. But now that it looks like there's plenty of interest, I suspect WayBetter will file the Reg A+ paperwork and go on to do a raise on SeedInvest. Then investors will be able to see critical details (like the company's valuation) before actually plunking down their cash. Benefits of "Equity Crowdfunding" Become Apparent SeedInvest CEO Ryan Feit appeared on Jim Cramer's Mad Money on CNBC last week to talk about Reg A+. One of the topics that came up was... WayBetter. What an amazing opportunity for a startup! Exposure to hundreds of thousands of potential customers AND investors. I expect equity crowdfunding to generate this kind of buzz on a regular basis. It's a new and exciting way to invest. Companies that are willing to take a risk on a new way of funding will reap the rewards. I expect we'll see a flood of Reg A+ deals soon enough. Stay tuned, Adam Sharp Founder, Early Investing You May Also Enjoy... Timing: The One Factor Investors Can't Ignore By Andrew Gordon on June 24, 2015 A startup can have the right idea, the right team and a superior product. But without the right timing, that company will fail. Read on... The Startup Diversification Playbook By Andrew Gordon on June 19, 2015 Diversifying your startup portfolio by these five metrics will give you a more rounded collection of startups. It lowers overall risk. And it gives you the best chance of building a high-performing portfolio. Read on... Equity Crowdfunding Arrives, Finally By Adam Sharp on June 17, 2015 On June 19, a key part of the JOBS Act finally goes into effect. It's called Regulation A+, and we think it's the start of something very big. Read on... © 2015 Early Investing, LLC All Rights Reserved North America: 1 800 683 0687; Fax: 1 410 329 1923 International: +1 443 353 4254; Fax: +1 410 329 1923 Email: news@earlyinvestinginfo.com Privacy Policy | Whitelist Early Investing Click here to unsubscribe Nothing published by Early Investing, LLC should be considered personalized investment advice. 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