“Because of this bill, start-ups and small business will now have access to a big, new pool of potential investors — namely, the American people. For the first time, ordinary Americans will be able to go online and invest in entrepreneurs that they believe in,” the president said in a Rose Garden signing ceremony.ZeroHedge and Bank of America aren't sure the American people have disposable income to invest:
The upshot is that the recent pick-up in consumption is not being fueled by income or wealth gains, but mainly by drawing down savings. Many households remain deeply distressed and react to higher costs of living by drawing down savings further.
The bill also indicates equity funding for start-ups is an option for "qualified investors." It's likely rich foreigners will have a better shot of qualifying than the average citizen. The former may lead to the latter.
According to the Department of Homeland Security, foreign investors have to invest only $500,000 to get residency, provided they meet other restrictions. They have to invest in a rural or underdeveloped community and they have to create at least 10 jobs, either directly or indirectly. They have to invest $1 million or more if they aren’t investing in rural or underdeveloped areas. (They are eligible for permanent residency after two years and full citizenship after another five years if they meet certain criteria.)
Angel investing is going Alien.