JOBS Act Infographic: What the Heck is Crowdfunding Anyway?
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Still trying to figure out how crowdfunding works and what the JOBS Act is? Thanks to the new crowdfunding platform Fundable and earnmbadegree.com, here’s a handy infographic that explains it all.
The 2012 Jumpstart Our Business Start-ups (JOBS) Act presents entrepreneurs with new options for raising capital. Small businesses and start-ups will no longer have to rely solely on banks, venture capitalists and angel investors for financing.
Crowdfunding evolved from microfinancing and involves soliciting relatively small investments from a very large number of people. Pioneered by charities and arts projects, online crowdfunding platforms help entrepreneurs reach potential investors from around the world.
The JOBS Act empowers businesses to use crowdfunding platforms to raise as much as $1 million in capital per year from individual investors without registering with the Securities and Exchange Commission (SEC).
If you want to find out how crowdfunding could benefit your business when the law fully goes into effect in early 2013, check out this article that my Kaufman, Rossin colleague, Nicole Denny, CPA, MBA, recently wrote for Voxxi.com about how entrepreneurs can get ready now to start raising capital via crowdfunding.
Lisa Ruiz is a Content Marketing Director at Kaufman Rossin, one of the Top 100 CPA and advisory firms in the U.S.
