As an investor, why is this different than Kickstarter, Indiegogo or other similar platforms?
For 97% of Washington residents, this will be the first time you have been allowed to invest to become a co-owner of an emerging business. In the past, only the 3% of wealthiest Washingtonians were readily allowed to make such investments.
You will be investing in these businesses with the intention of making a financial return. Rather than receiving a gift, you will be purchasing securities that entitle you to a portion of the income if a business is sold or makes distributions.
In March of 2014, Facebook purchased a non-equity crowdfunded business called Oculus VR for over $2 billion. The non-equity investors who crowdfunded Oculus VR instead received an Oculus Rift visor. If Oculus VR had been funded with equity crowdfunding instead, the return on investment for original investors has been estimated between 145-200x. An investor who invested $1,000 would have received $145,000 to $200,000 in the acquisition.
While a highly unusual example, it illustrates why the 3% have benefited from investing in these kinds of private businesses, and why this market is now being opened up to the other 97% of Washington residents.