SAN FRANCISCO, CA – May 19, 2016 – (HISPANICIZE WIRE) – Latino Startup Alliance (LSA) announces Project Equity Impact as new Crowdfunding rules under Title III of the Jumpstart Our Business Startups Act (JOBS Act) go into effect this week. LSA, the leading umbrella organization for Latino entrepreneurs in tech, recognizes the new rules as an important opportunity to educate the Latino community about equity crowdfunding.

Today marks a new era of capital formation and investing for the general public. The new rules now permit anyone, regardless of net worth, to invest up to $2,000 or 5 percent of their annual income, whichever is greater, directly in private companies through on-line crowdfunding portals.

Prior to Reg CF, investing in startup companies was restricted to an elite group of wealthy “accredited investors” with earnings over $200,000 or a net worth of at least $1 million. According to Forbes, the new rules will expand the market of early investors, or angel investors, from 370,000 to 240 million. The new Crowdfunding rules known as Reg CF represent an historic shift in the way early stage entrepreneurs access seed capital.

“Seed capital for Latino led startups is some of the hardest capital to come by,” says Jesse Martinez, co-founder, of LSA. “We see this initiative as an important opportunity for Latino tech founders who receive about 1% of venture capital in Silicon Valley. There is a real paradox right now with the unprecedented growth of Latino small businesses and the lack of startup capital going to Latino founders and we see this initiative as a starting point to remedy this problem.”

Project Equity Impact is working with a wide range of strategic partners to ensure that Latino entrepreneurs and investors clearly understand the new rules and their inherent risks and opportunities. The initiative will educate entrepreneurs & investors through strategic engagements, a media campaign and create on-line resources. More importantly, the project will pilot intensive workshops for both entrepreneurs and investors to prepare them to utilize Reg CF.

“We see this initiative as a platform to address two pressing problems facing diverse entrepreneurs, first, we want to increase the pool of early stage capital to underrepresented entrepreneurs and second, we want to diversify and increase the number of angel investors in tech.” says Ramona Ortega, an LSA board member and project advisor. “I am a trained securities attorney and I understand the risks and potential pitfalls for both entrepreneurs and investors, so we want to make sure that all parties are informed and prepared to make the right choice. Particularly for the Latino community, we believe education is critical so people feel comfortable in taking advantage of these new opportunities.”

For more information on Project Equity Impact visit www.latinostartupalliance.org, Facebook www.facebook.com/LatinoStartupAlliance, Twitter @Latino_Startups.

About Latino Startup Alliance

The Latino Startup Alliance was formed to encourage, inspire and cultivate U.S. Latino led technology startup ventures by providing a strong support network of fellow entrepreneurs, investors, innovators, & mentors. The Latino Startup Alliance is a Silicon Valley based non-profit organization built to empower the next generation of Latino startups and innovators.