Entrepreneurs who have been waiting to take advantage of the Jumpstart Our Business Startups (or JOBS) Act may have to wait a little longer. The Securities and Exchange Commission continues to drag its heels on implementing the new law, which allows start-ups to find investors online via crowdfunding.
When Congress, in an almost unheard-of display of bipartisanship, passed the JOBS Act in April, crowdfunding seemed poised to boom. In 2011 alone, crowdfunding platforms helped raise about $1.5 billion for start-ups and other projects, according to Massolution, a research firm covering the space. Currently, the money raised on sites such as Kickstarter and Indiegogo is characterized as donations (for which donors are often offered rewards and opportunities to preorder products). The JOBS Act allows start-ups to potentially raise a lot more money online by using crowdfunding to sell equity in their companies.
To read the original article: Crowdfunding Start-ups Hit Speed Bumps | Inc.com
