GW’s Entrepreneurship and Crowdfunding Barriers to Today’s Revolutionary Entrepreneurs

Happy 282nd, Mr. President! May we restore freedom for entrepreneurs following in your footsteps.

Happy 282nd, Mr. President! May we restore freedom for entrepreneurs following in your footsteps.

JOHN BERLAU | FEBRUARY 21, 2014 | OpenMarket – Washington’s birthday, everyone! Although the holiday was on Monday, George Washington’s actual date of birth is February 22, in the year 1732.

And one of the many ways to celebrate Washington is to reflect on his pioneering entrepreneurship. That’s right, the father of our country was also one of the first of America’s many visionary entrepreneurs who was largely self-made. As I write in National Review, “Washington’s background wasn’t exactly poor, but he was not as wealthy as many of his contemporaries among the Founders. His father died when he was eleven, and the family lacked money to give him a formal education.”

But Washington learned not only the value of perseverance but of innovation. He abandoned Mount Vernon’s main cash crop of tobacco to cultivate wheat. Then, “pioneering the integration of related enterprises, he became a manufacturer of two products from his crop: flour and distilled whiskey.” As I note, Mount Vernon has reconstructed Washington’s flour mill and whiskey distillery, and they are definitely worth a visit!

Today, we are still a nation of entrepreneurs, but entrepreneurs have much red tape to deal with. One area of bipartisan agreement for barriers that need to be eased is in the area of equity crowdfunding. It is legal to raise funds for music, movies or other ventures on crowdfunding sites such as Kickstarter and IndieGoGo, but only if funders of these projects are offered nothing of real value. Any promise of profit sharing or potential return on investment trigger the same securities laws that apply to Fortune 500 companies.

The Jumpstart Our Business Startups (JOBS) Act signed by President Obama in 2012 was supposed to change this. And indeed the JOBS Act has made it easier for small and midsize companies to go public by delaying onerous provisions of Dodd-Frank and Sarbanes-Oxley for most new initial public offerings (IPOS), spurring the U.S. IPO market. But unfortunately its promise remains elusive for the smallest of entrepreneurs and the ordinary investors who could benefit. The Securities and Exchange Commission proposed a severely restrictive rule for crowdfunding that, as I wrote in CEI’s comments to the agency, “may cost an entrepreneur as much as $39,000 to raise $100,000 through crowdfunding” by the SEC’s own estimate.

I pointed out that equity crowdfunding is not at all radical given the other electronic transaction we engage in every day. “Investors buying the smallest portions of the smallest businesses face more ‘protections’ than if they pay thousands more for a business outright.”

And we should remember that crowdfunding really began while Washington was serving as president in 1790, when merchants and investor who got together in Philadelphia’s taverns and coffee shops formed the Philadelphia Stock Exchange in those very watering holes. Crowdfunding, minus computers but with the (physical) social networking, was how the first stock exchange in the U.S. was formed.

Happy 282nd, Mr. President! May we restore freedom for entrepreneurs following in your footsteps.

read more: http://www.openmarket.org/2014/02/21/gws-entrepreneurship-and-crowdfunding-barriers-to-todays-revolutionary-entrepreneurs/

HEADLINE NEWS

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

LITTLE GUIDANCE FROM IRS ON TAXING CROWDFUNDING CONTRIBUTIONSBloomberg BNAWe've all heard the stories of crowdfunding appeals that go viral. Whether it's a musician raising money to produce an album, an inventor with a great idea, or a family in distress that needs help, cro [...]

VCCircleNew trends in crowdfunding that make it a potent fund-raising toolVCCircleOver the years, crowdfunding has become popular among entrepreneurs mainly because it's a great way to test the waters before you actually launch the product or service. You understand your idea [...]

FortuneIndiegogo's Difficult Path to Offering Equity CrowdfundingFortuneIndiegogo founder Slava Rubin discusses how Indiegogo's equity crowdfunding service has been performing since its launch in 2016. Photograph by Indiegogo. E-mail; Tweet; Facebook; Linkedin. Share icons. [...]

Telegraph.co.ukSkiTelegraph.co.ukBut now, to supplement her fast food income and to be more certain of joining her older sister Katie, a fixture on the Park and Pipe team, Summerhayes has launched a crowdfunding campaign with PledgeSports to raise some money towards her travel and ... [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

NewshubWoman born without vagina crowdfunding surgeryNewshubThe family of a woman born without a vagina has started a crowdfunding campaign to receive reconstructive surgery. Kaylee Moats, from Arizona, lives with Mayer Rokitansky Küster Hauser syndrome (MRKH) meaning she has no cervi [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

Global Crowdfunding Market 2017-2021PR Newswire (press release)Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The rep [...]

AOL UKShould you forget the stock market and focus on crowdfunding?AOL UKIn recent years, the popularity of crowdfunding has soared. For example, in 2016 the amount raised through crowdfunding surpassed venture capital funding for the first time in its history. By 2025, it is estimate [...]

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 |