Crowdfunding & The JOBS Act
According to Wikipedia, Crowd funding (alternately crowdfunding, crowd financing, equity crowdfunding, crowd sourced capital or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations.
While creating my IndieGoGo campaign for guides to the Best Cafes for Writers,Bloggers & Students. A banner appeared at the top of the site congratulating me; The JOBS Act passed. This opens up a new source of funding for small companies and startups. Much of the attention so far has been on this component of the bill because it would allow financing via crowdfunding. Participants can raise as much as $1 million a year without having to do a public offering — a step requiring state-by-state registrations that can cost thousands of dollars.
This type of funding will open up more opportunities for capital to flow into startups. New companies means new jobs.
Investor protection may be a cause for concern, but if you’re investor you really should take extra precaution. That’s the case with everything. I can’t walk down the street without someone asking me or offering to separate me from my funds.
So Buyer Beware!
Oh and did I mention I created an IndieGoGo campaign? Sponsoring us will help shine a light on local businesses.