After 77 years of writing and exercising (albeit selectively) some of the most restrictive rules for raising capital in the world, the U.S. is poised to usher in an exciting new business era for raising capital which may allow start-ups, small businesses and cause-based projects the ability to harness the amazing power of the Internet by tapping into the power of crowds through the utilization of social media.
HR 2930 passed in the House 407 to 17 while S.1791 is working its way through the Senate. The White House has already indicated support for a CrowdFunding Bill. It appears that the laws are about to change and that this will usher in an entirely new CrowdFunding Era.
Small businesses account, in the aggregate for in excess of 90% of all hiring. And small businesses have been increasingly starving from lack of capital, particularly in these last five years.
By unleashing the CrowdFunding option, hundreds of thousands of new businesses may have access to money, and this is good news for both the job marketplace and for all commerce. It may accelerate the capitalization and operation of your business or organization and give you the budgetary room to hire the talent you need.
But, most importantly, while crowdfunding may serve to give growing businesses the springboard that they need need in order to become successful at minimal documentation and compliance filing expense, it has not been proven out -- at least not yet -- for aggregate financings in excess of $10,000.00 - $100,000.00.
Douglas E Castle [http://aboutDouglasCastle.blogspot.com] for
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