This month’s Hannah Grimes Times theme was Crowdfunding: Is it an effective investment tool for businesses, like yours, to use? What are the possibilities and hazards? Will the JOBS Act help or hinder your use of this tool? View these articles and share your thoughts about crowdfunding below:
New Law Lets Small Businesses Use Crowdfunding
By Joyce M. Rosenberg,Originally Posted at Businessweek
Crowdfunding is a method of raising money from a large number of people and it’s generally done online. Charities have been using it for years — the Internet and social networking sites such as Facebook have made it possible for them to reach millions of donors. Companies in India have also used crowdfunding to raise money.
The JOBS Act: What You Need To Know
By Catherine Clifford, Originally Posted at Entrepreneur.com
The ink is still drying on a piece of legislation that President Obama signed today, and the new law is good news for entrepreneurs seeking capital. Here’s a rundown of what is in the law and why it matters to you and your business.
Changing the World Responsibly
By Candace Klein, Originally Posted at CSRWire
As a business owner who is directly affected by this legislation, I want to be able to invite borrowers and peer lenders onto my site as quickly as possible. However, my interest is for the best interest of my customers – borrowers and lenders. I want to be a pioneer in an industry that will be hailed a century from now as the new era for small business access to capital. I want to be remembered by future generations as a CEO who truly cared for the small business borrower (and lender).
Three Models of Crowdfunding
Originally Posted at The Business Alliance for Local Living Economies
Campaigns gather hundreds of small donations to achieve a financing goal (growth/expansions or start up). Donors choose their benefactors and feel good about contributing to an economic or artistic endeavor.
Supporters make a monetary contribution in return for a reward of some sort. The rewards can be wholly intangible, such as being identified publicly as a supporter, or a t-shirt.
Investors receive an interest in the profits of the business that they are helping fund. A crowd funding exemption to SEC regulations has been signed to law. What impact will this have on Main Street?
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