"Crowdfunding" is a powerful, multi-faceted and rapidly developing set of mechanisms for enabling broader and more democratic capital formation and financial support of business enterprises and other socially worthwhile purposes. Most notably, the 2012 Jumpstart Our Business Startups (JOBS) Act changed almost a century of American financial legislation and practice by authorizing and facilitating the sale of securities (equities and debt) by American businesses to any citizen of our country and world. This revolutionary change was laudably intended to assist aspiring and growing businesses with the always difficult task of garnering sufficient early financial support, and to allow everyone, rather than just the wealthiest few percent, to participate in this essential economic activity as well as reap the potentially substantial returns therefrom.
Title III of the JOBS Act, allowing the sale of non-registered securities to any investor, (finally) became operational on May 16, 2016. It is critical to note, however, that the majority of advocates for and about this new endeavor are industry service providers and business leaders who, although essential players in the ecosystem, primarily seek investors' money. Despite their genuine or expressed sympathy and good intentions, they are profit-seeking enterprises attempting to make a living from short-term transactions rather than long-term benefits to investors, and therefore have clearly different interests and rewards from those providing the funds. Newly enfranchised TItle III investors were previously precluded by law from such investment activity, and thus can have no relevant practical knowledge and experience. Moreover, it is universally agreed that early-stage investing is a highly risky activity in all cases. Together, the offering of unusually highly regulated investment opportunities, through an industry seeking to profit from immediate sales thereof, to a large population of inexperienced investors, is an almost certain recipe for generally poor (!) financial outcomes for said investors.
Fortunately, there is at least a partial answer to these problems. "Angel investing", in which heretofore wealthy ("Accredited") investors have provided early financial support to a large number of ultimately successful start-up and growing enterprises in return for an ownership stake or other financial return, has provided critical underpinning for the entrepreneurial economy for many decades, supporting the creation of a net majority of new jobs and wealth in this and other countries. By the broadest definition, anyone who directly invests in an individual company with his or her own money is an Angel investor. Further, it has been repeatedly established and is a generally accepted truth that Angel investing is best done in and by groups of collaborating, and mutually educating and supporting, peers. The American Angel Capital Association (or ACA), like its national analogues in other countries, is an institutional "mother ship" of Angel investor education, best practices and results, and continues to develop the model of a collaborating network of individual (although Accredited in its case) Angel investors. Crowdfunding Investment (CFI) Angels was established to serve as a functioning virtual ACA-style network open to all interacting and collaborating Crowdfunding investors, and is a registered Affiliate Organization, with full access and participation, in the Angel Capital Association. It is our goal and belief that the majority of investors who pursue Crowdfunding investment in direct collaboration with their peers, as members of CFI Angels, will attain superior financial results overall as compared to those who choose to operate individually or under the sole tutelage of offering intermediaries or other industry participants, due to a far closer alignment of interests and experience.
Crowdfunding Investment (CFI) Angels
A membership organization of, by and for crowdfunding investors, exclusively!