Crowdfunding raises hopes and concerns
When Congress passed the Jumpstart Our Business Startups Act earlier this year with bipartisan support, the legislation included provisions that allow small businesses to raise money online.
Crowdfunding began as a way for the public to donate small amounts, often through social networking sites, to help artists, musicians, filmmakers and other creative people finance their projects.
Now, crowdfunding will allow bakeries, repair shops, any kind of small business to solicit investments from the public online.
According to a recent industry report, more than 400 crowdfunding platforms were operating at the beginning of 2012, and several hundreds more are expected to seek accreditation by the end of the year.
Nearly $1.5 billion was raised via crowdfunding platforms last year alone – and that's even before the JOBS Act was passed.
Last month, reports about small businesses trying to solicit investors too early prompted the North American Securities Administrators Association,
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