Arming the mid-size companies with a new funding channel might trigger the valuations hike further, imposing the notorious "bubble" the VCs like to talk about. Don't underestimate the power of billboards or TV commercials with investment offerings.
In life, whatever it is we are seeking will not arrive in the form we are expecting. Such is the case with raising equity in a post JOBS Act market -- something that fascinated but at the same time confused many business owners.
How to Raise Capital But Preserve Your Equity: Royalty Based Crowdfunding (Interview With Arthur Lipper)
With nowadays technology which keeps simplifying revenue management while making crowdfunding platforms as commodities, I believe royalty based crowdfunding is set to be one of the most popular models in the next two-three years.
The Internet is doing to the crowdfunding industry what it has done to countless other industries in the economy: democratizing the process and making geographical barriers irrelevant.
We have been waiting a long time for this moment. Sitting on the edge of our seats, money in hand for more than 18 months. The private equity field has been bracing for a shake up and it is finally here.
A majority of both parties supported the JOBS Act and leaders in both parties claim credit for the accomplishment. You would think they would want to implement the Act as soon as possible, but except for a few members in either chamber, the Congress is oblivious too.
The new JOBS Act will let millions of Americans "cross Wall Street" from the borrowing side to the investing side. But self-appointed nannies are blocking the way.
I often write about the brave and innovative entrepreneurs in Texas, but that is only because they are working overtime to lead by example in the startup community. Texas companies have made it a habit to dream big and follow that up with execution and realistic solutions.
Small businesses now must make some assumptions about policy decisions and move forward. They are too important to the country's economic recovery to remain in limbo.
Tuesday's vote has a significant impact on the nation's 28 million small businesses, which impacts our national economy as well. Small businesses are responsible for creating two out of every three new jobs over the past two decades. The candidates have both had their say, now it is our turn.
Crowd Funding Injects Up to $1 Million Cash Equity Into Your Business and Increases Your Borrowing Power
In part, the JOBS Act permits entrepreneurs to raise up to $1 million in any 12-month period with much less stringent requirements. Moreover, non-accredited investors will be permitted to invest up to $2,000 each.
The JOBS Act at least has initiated a shift from heavier regulation to smarter regulation -- regulation that strikes a good balance between protecting investors and stimulating a more robust, fluid, and effective capital market.
It's amazing for Congress to do much in any election year, let alone in this particular highly partisan environment. But the amazing is happening.
While no equity or ownership stake has previously changed hands in exchange for contributions, the recent passage of the JOBS Act may prove a game changer for entrepreneurs.
Thousands of us entrepreneurs will benefit from the JOBS Act. This could become a very viable and exciting way for small companies to raise capital. But not yet. The Securities and Exchange Commission (SEC) has nine months to draw up the regulations.