Dissecting Crowdfunding
By Mark Wallace:I wrote a piece on crowdfunding back in November, right after congress overwhelmingly passed The Entrepreneur Access to Capital Act.Well, on April 5th, President Obama signed into law the Jumpstart Our Business Startups Act (aka the JOBS Act). This pretty much cements crowdfunding as an alternative to traditional capital raising channels.That being said, the SEC will have 270 days to review the Act and set its own rules for investors and issuers looking to become involved in this new area of capital raising. Let's see how badly they mess up a good thing.Although we've talked about it before, let's dive a bit deeper and tear the Act apart.According to Oxford Dictionaries, crowdfunding is "the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet."I like this definition from USLegal.com better: "CrowdComplete Story »
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