This week, the SEC announced finalized changes to Reg A that were mandated by the JOBS Act. Basically, it just allowed start-up companies to sell stock to anyone.

The Securities and Exchange Commission voted unanimously on Wednesday to adopt rules that permit startups to raise money from the vast majority of Americans, including provisions that allow for deals to be made over the Internet.

Previously, only individuals with more than $1 million in net worth or income of at least $200,000 for each of the last two years — so called “accredited investors” — could easily invest in startups. Some websites already offer the chance to invest in startups online, but prospective investors had to be accredited and subject to more stringent regulations (Mashable Business, 3/25).

Different from traditional crowd funding where individuals can fund projects in exchange for free merchandise, personal thank yous, etc., individuals will be able to purchase equity in exchange for cash. While only US and Canadian companies are allowed to offer securities, there is no such limitation on the nationality of investors. So even though the risks of investing, especially in early stage companies, has been underscored by some very noted personalities, this is a potential game changer.

How does this relate to eSports? Well, I’ve written a bit about how eSports will continue to be hampered by notable issues until the road to financial feasibility is easier to tow. Today, most eSports organizations (teams, other businesses, etc.) have yet to vet successful business models. However, the changes finalized by the SEC might serve as a wildcard. Imagine the possibilities offered by eSports organizations being able to offer stock to, what is currently their most sustainable asset, the fanbase/surrounding communities.

Different from today’s crowdfunding offerings, this would involve actual equity and:

• requires disclosure requirements that are subject to SEC review
• involves a lawyer
• no “crowd” sharing of information is mandated

Meaning, this would be a legitimate early stage capital raising option for companies. Cash in exchange for ownership. How many dedicated fans would consider buying a stake in their favorite team/org? What better way to not just support but also actually purchase a stake? Instead of purchasing a t-shirt, buy some stock. The opportunities are intriguing, even if it would be limited to organizations based in North America. Nonetheless, it’ll be interesting to see if any new models take hold in the eSports world over the next year or two.

eSports Group monitors hundreds of trending signals to keep you “in the game” of the global eSports industry.  Join our free mailing list and stay connected to the business side of eSports – http://tinyletter.com/afletcher

Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed