What Are Alternative Investments?
Broadly speaking, alternative asset investments are alternatives to the three traditional investment asset classes: equities, bonds, and cash.
At Venovate Marketplace, we focus on private placement investments in alternative asset classes such as:
- Real estate
- Natural resources
- Private equity
- Hedge funds
- Venture capital
- Private companies
The JOBS Act Changed Everything
Before September 2013, issuers of private placements could not market their securities to anyone they did not already know to be either an institution or a wealthy, sophisticated individual. The Jumpstart Our Business Startups (JOBS) Act of 2012 changed all that. It gave the SEC a mandate to make private placements more accessible so it would be easier for firms to raise capital.
Rule 506(b) vs. 506(c)
In September 2013, the SEC introduced new regulations that give issuers two ways to offer private securities. The old rule that most issuers previously used is now Rule 506(b), and the new, emerging standard is Rule 506(c).
- Under Rule 506(c), issuers may freely engage in general solicitation, publicly promoting their offering, but they are responsible for new, stricter requirements to ensure the accredited status of investors.
- Under rule 506(b), issuers must rigorously monitor their activities to ensure that the prohibition against general solicitation and advertising is maintained at all times.
Compliance Driven Systems
Venovate Marketplace has worked closely with securities law firms to design systems and processes that help support compliance with both 506(b) and 506(c) offerings.
On our platform, an issuer decides which rule they wish to rely on, and our proprietary business processes enforce the right set of restrictions and entitlements to comply with applicable laws, regulations, and guidelines.
This gives the right investors access to the right kinds of offerings, and gives issuers the flexibility to conduct business as they see fit.
How Venovate Marketplace Makes Alternatives Smarter
The US market for alternatives is over $18 trillion in investable opportunities and, until now, has been accessible only to institutions and the wealthiest individuals.
Venovate Marketplace is bringing access, transparency, and efficiency to the private placement market. The result? Smarter alternatives for both investors and issuers.
Smarter for Investors
- Access to offerings in all the major alternative asset classes
- Ability to screen and filter offerings
- Transparent information on each deal to make research easier
- Electronic forms and signatures for more efficient transactions
Smarter for Issuers
- Verification of accreditation of investors
- One secure place to list all due diligence documents
- Electronic paper flow, escrow, and money transfers
- Compliance driven systems for 506 (b) and 506(c) offerings