This board will be for discussing new crowd financing strategies, info sharing, and general discussion. This is not a place to PUMP or PROMOTE your startup, those posts will be removed, thanks.
This I-box will be updated swiftly.
The JOBS Act offers a new opportunity for businesses looking for funding; rather than needing to apply for a loan or look for credentialed investors, businesses can look to the crowd for financing. The model was pioneered by such sites as Kickstarter, which allows artists and other individuals to post projects and ask interested parties to donate money, often in small amounts, to cover a set amount of costs. But where Kickstarter has helped fund very specific, usually short-term creative projects, the JOBS Act opens up opportunities for sustainable business ventures.
Official JOB Act bill:
- SEPTEMBER 14TH, 2011: Congressman McHenry introduces H.R. 2930 or Entrepreneur Access to Capital Act
- DECEMBER 8TH, 2011: Senator Merkley introduces S.1970 or CROWDFUND Act
- NOVEMBER 3RD, 2011: The House passes H.R. 2930 in bipartisan 407-17 vote
- MARCH 8TH, 2012: The House passes the JOBS ACT (a bill package that includes H.R. 2930)
- MARCH 13TH, 2012: Senators Merkley, Bennet, Brown and Landrieu co-sponsor S. 2190 or CROWDFUND Act
- MARCH 22ND, 2012: The Senate passes the JOBS ACT amended with the CROWDFUND Act
- MARCH 27TH, 2012: the House passes the CROWDFUND Act
- APRIL 5TH 2012: President Obama signs the CROWDFUND Act into law
CrowdFunding Cliffnotes for NOOBS:
- A company can crowdfund up to $1 million over a 12 month period ($2,000,000 with audited financials)
- Individuals earning less than $100,000 may invest up to $2,000 or 5 percent of annual income, whichever is greater, over a 12Th month period. Individuals earning $100,000 or more may invest up to 10% of annual income, capped at $100,000, over a 12 month period
- Investors can fund one company or several companies as long as they remain within these annual limits
- Companies crowdfunding must be registered/incorporated in the U.S.
- Companies crowdfunding must provide a description of their ownership and capital structure
- An investor must wait 12 months before selling her/his securities unless the sale is to a family member, the issuing company, or an accredited investor
- A crowdfunding round does not prevent a company from raising capital through other legal channels
- Top employees of issuing companies must successfully undergo a background check
- Companies crowdfunding are exempted from the 500 shareholder cap.
A decent blog that covers an array of topics:
Brief youtube video if you have No clue on what crowd funding is