What JOBS Act? A White House Crowdfunding Crowd Is Doing Fine Without It

This afternoon, the White House is honoring 12 entrepreneurs who’ve used crowdfunding to launch tech startups and Main Street businesses, make microloans, and explore ocean floors and outer space.

The recognition of the entrepreneurs calls attention to a conspicuous absence. More than a year after President Obama signed the JOBS Act into law, predicting it would be a “game changer,” the Securities and Exchange Commission has yet to finalize rules that would make it legal for companies to sell equity stakes to anyone over crowdfunding platforms (right now they can only sell to accredited investors).

Is the wait really that big a deal to most companies seeking funding? The JOBS Act requires those raising more than $500,000 from non-accredited investors to provide audited financial statements. That’s a likely turn-off. Of course, there are plenty of businesses that would leap at the chance of selling shares in their companies once the rules are finished.

For those that can’t wait, there are already a variety of proven ways companies can tap friends and strangers to raise money, as the White House list of honorees makes clear: Aurora Anaya-Cerda used donations made over Indiegogo to open an independent bookstore in East Harlem, N.Y. Max Hodak sold stakes to accredited investors through AngelList and SecondMarket for his biotech startup Transcriptic, which is working to automate lab research. Watsi crowdfunds donations for medical care in 13 countries. Mosaic raises equity for solar projects within the framework of New York and California securities laws.

Clark is a reporter for Bloomberg Businessweek covering small business and entrepreneurship.

Source: Bloomberg Business – Patrick Clark

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise ...NPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it woul [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

CoinDeskKickstarter ICO? Don't Count On It Says Crowdfunding Leader ...CoinDeskThe company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business. Coming in response to the news yesterday that compet [...]

CryptoCoinsNewsCrowdfunding Giant Indiegogo Looks to Make ICOs Mainstream ...CryptoCoinsNewsOne of the world's most popular crowdfunding platforms is getting in on the ICO game. Josiah Wilmoth on 14/12/2017. ------------------Advertisement------------------. Advertisement · Reddi [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

Crowdfunding via Customers: Is This The New Startup Capital?Customer ThinkWith more and more companies in a variety of sectors developing new crowdfunding campaigns, it makes sense to ask whether crowdfunding is likely to replace startup capital in the near future. Crowdfunding is qui [...]

VentureBeatAtaribox hits the pause button on its crowdfunding campaignVentureBeatAtari was supposed to start taking preorders along with launching its crowdfunding campaign on Indiegogo today for its new Ataribox console. However, it seems to have hit an unspecified snag and in an ema [...]

Coindesk (press release) (blog)Crowdfunding Giant Indiegogo Opens to ICOs - CoinDeskCoindesk (press release) (blog)The startup revealed today that, through an existing partnership with MicroVentures, it will begin offering services to projects seek to use the blockchain funding model. [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |