Several bills pending in Congress would make it easier for biopharma and other tech startups looking for financing other than the traditional—and increasingly hard to secure—venture capital.
The bills would encourage an alternative that has met with success in other fields, namely crowdfunding—the practice of soliciting small amounts of capital from numerous funders rather than a large lump sum by one or more investors.
The House of Representatives signaled its interest in crowdfunding on November 3, when it passed, by a rare bipartisan 407–17 vote, HR 2930, the Entrepreneur Access to Capital Act introduced by Patrick McHenry (R-NC). This prompted President Barack Obama to support the measure, calling for “a national framework that allows entrepreneurs and small businesses to raise capital through crowdfunding.”
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