In the past crowdfunding has been a way for a variety projects to get funding from a large number of backers, usually through the internet. It has been a topic of conversation among the investment community since President Obama signed the Jobs Act on April 5, 2012.
This Act eases the regulations that apply to giving and receiving capital in exchange for equity. Details surrounding the rules of crowdfunding are still in the works. The Securities and Exchange Committee (SEC) has 270 days from the time the law was signed to enact specific rules for crowd funding.
Why is it important?
For Entrepreneurs:, it is a way to raise capital outside the normal channels. Instead of pitching your idea to individuals and investment firms, you are pitching it to thousands of people who may be interested in buying in to your idea at smaller incremental levels.
For investors it is a way to buy into an interesting project without investing large sums of money. Crowdfunding allows you to get into a deal as a small investor of a larger community.
What is the Role of VentureCapital.org?
VentureCapital.org can leverage its extensive network to identify and vet deals worth funding. This by no means eliminates the risk of the deal, but it does decrease the risk to the investors..
Once identified, VentureCapital.org will advertise the deal to its investment community, making it easier to achieve the funding goals of the company. VentureCapital.org has a long history connecting fundable start-ups with willing investors. VentureCapital.org plans to continue this track record of success in this new realm of investing.
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