- September 10, 2020
- Posted by: Kirsten Campbell
- Category: Blog
Generational wealth offers freedom in the form of financial security, choice and opportunity.
There’s a reason why Beyonce asked to be paid in Uber stock back in 2015, rather than taking her usual $6M fee. She was right about the future of the company’s stock increasing and cleverly positioned herself to be the recipient of about $300M. While none of us are Beyonce, we can certainly follow her savvy investing example. Owning assets that appreciate is a powerful step in the direction of accumulating generational wealth. While many folks interpret that to mean homeownership, thanks to equity crowdfunding, that’s no longer the sole route to building wealth. This is great news for New Yorkers, for example, most of whom will likely never own their own home.
There’s pride in ownership, and now that it goes beyond real estate, more people have the opportunity to empower themselves financially. Since the JOBS Act came into effect after the 2008 recession, equity crowdfunding has proven to be more fruitful for marginalized groups than the entire VC industry as a whole. Access to startup capital through equity crowdfunding allows diverse entrepreneurs the chance to launch their own companies, build wealth and spread success throughout their community. With 67% of each dollar spent at a small business staying in the local community, the financial ripple effect is profound. Equity crowdfunding funds entrepreneurs and gives local investors the chance to own a slice of the shops, restaurants and companies they love.
Having the funds to afford college, assist with a down payment and support a student while interning for free are tremendous opportunities that set families ahead by miles. This wealth falls along racial lines, as the average Black household would need to work for 228 years to achieve wealth on par with their white peers. Equity crowdfunding is a route to build generational wealth that’s separate from homeownership and Wall Street. Successful businesses and equity ownerships are legacies themselves. Investing in yourself and your community through equity crowdfunding gives families a chance to pass down substantial inheritances, even if they never own a home.
If you’re curious to learn more about investing in and via equity crowdfunding, check out TruCrowd’s online investment portal