With the passing of the Jumpstart Our Business Startups (JOBS) Act in early April, crowdfunding is dramatically changing. In a previous blog post, I discussed the crowdfunding site Kickstarter. For those of you that don't know, a crowdfunding website is a place where anyone can go in order to give money to a startup or project. Before the JOBS Act was passed, it was illegal to give any equity of your company via crowdfunding sites. You could only give away rewards and gifts in exchange for the cash. However, once the JOBS act is put into action, startups will be able to raise capital up to $50 million in exchange from up to 1000 different shareholders.This is literally one of the most drastic shifts that entrepreneurship has ever seen. The barriers to entry have significantly decreased. Now ANYONE with a great idea can potentially (and fairly easily) raise money to start a company.
What does this mean for you? This means that you, yes even you, could post your golden idea online and be on your way to millions of dollars of funding with a few clicks of the mouse.
Source: http://news.yahoo.com/obama-signs-game-changing-crowd-funding-jobs-act-160100102.html
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