Get any emails from start-ups asking you to invest this week? It won’t stop anytime soon. The new JOBS Act, which was signed into law this last spring and went into effect Monday, changes the SEC guidelines about seeking investment. Anyone can ask for cash. And as long as you’re an accredited investor, you can sink your money in.
It’s a good moment for organizations like 3rd Ward, the Brooklyn warehouse that offers up co-working space, studios and classes for artists. 3rd Ward expanded to Philadelphia this year and is opening a culinary space in Crown Heights, Brooklyn. The new food-themed spot is partially funded by the New York City Economic Development Corporation along with angel investors and other institutions, but it need more capital to continue its growth.
So 3rd Ward has partnered with Fundrise, the real-estate crowdfunding website, to make an equity offer to the general public (so long as you’re an accredited investor). It wouldn’t have been able to solicit via Fundrise without the new JOBS Act. Once Title III of the JOBS Act is approved — sometime early next year, probably — Regular Old Joes like you and me will be able to invest, should we so desire.
If you’re the investing type, it might make all that spam worth it.
The Equity Factor is made possible with the support of the Surdna Foundation.
Bill Bradley is a writer and reporter living in Brooklyn. His work has appeared in Deadspin, GQ, and Vanity Fair, among others.