Based on the current market conditions it has never been a better time to raise funds through equity investment. The majority of private investors have been scared if not forced out of the stock markets because of the substantial drops in very short periods of time. In instances like this, investors are carrying large amounts of liquid cash and are forced to either hold in standard deposit accounts or place their funds in equity backed transactions. The greater perceived security garnered from this form of investment assists in alleviating the stresses of Bear markets.

While an investor typically must allow his stock broker or financial advisor to place and move capital around the stock market, they become personally in control of their own investments and equity ownership in companies and projects.
This security allows them to leverage equity assets for future investments based on the increased value of the companies or projects they now have short term ownership in.

In most cases these types of transactions are based on Reg D offerings thus making them un-regulated by the SEC. There are a number of stipulations to Reg D style offerings and investment and those typically fall under ruler 504,505 and 506. These stipulations limit the amount of Un-Accredited investors that are allowed to invest in each project in addition to the amount each project can raise based on the rules they build there Private Placement Memorandum’s under.

In times of extreme financial crisis and heavy market volatility these investments historically show to be the safest and highest earning opportunities available to a savvy but weary investor.

References:
http://www.sec.gov
http://www.sec.gov/answers/regd.htm
http://www.sec.gov/answers/rule506.htm
http://www.sec.gov/answers/rule505.htm
http://www.sec.gov/answers/rule504.htm