Last week, the U.S. House of Representatives passed a crowdfunding bill that will allow startups to offer and sell securities via crowdfunding sites and social networks. If passed by the Senate and signed off on by the President, the bill will become a law, giving entrepreneurs new options for raising money for their companies. Here’s a look at the current and proposed crowdfunding rules, and how this bill could shake things up for startups. What is crowdfuding? As the term suggests, crowdfunding is funding from a crowd of people; that is, many people provide small amounts of money to financ
. . . → Read More: What the new U.S. crowdfunding bill means for entrepreneurs
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Traditionally when businesses expand they fund growth by offering company stock or pledging assets to secure debt. As the public offering and lending markets have pulled back in the current economy we see more business expansion funded through venture capital and angel investor groups. With angels moving up the funding hierarchy and leaving a gap with only friends-and-family as the next funding option for entrepreneurs, there is an interesting legislative initiative proposed to fill this gap with federally authorized crowd funding. Crowd funding has not been recognized as a legal w Washington, D.C. (Press Release – September 15, 2011) – Small Business & Entrepreneurship Council (SBE Council) member and entrepreneur Sherwood “Woodie” Neiss brings his Crowd Fund Investing (CFI) framework to a congressional hearing today, where there is growing support to modernize outdated security laws that prevent small business owners from tapping into their networks for raising capital. Today, the U.S. House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs is hosting “Crowdfunding: Connecting Investors and Job Creators” where they will hear from Nei Kickstarter is a new way to fund ideas and endeavors. It is a funding platform for artists, designers, filmmakers, musicians, journalists, entreprene Despite sub-prime loan worries rocking the economy, peer-to-peer loans are gaining some traction. You’d think loans between individuals would be much The three biggest peer-to-peer lending sites – Prosper, Lending Club and Zopa – are all similar but with some key differences. We did the research to Lending Club is a social lending network where members can borrow and lend money among themselves at better rates. Every bank is about sharing money–your money goes in, they share it with other people, called borrowers. They pay you 2%, then charge them 18%. But We are an online community for lending and borrowing money. Borrowers enjoy fixed monthly payments, no hidden fees and no pre-payment penalties. P The Microloan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes fun |
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