Obama’s change for crowdfunding
President Barack Obama recently proposed the American Jobs Act to create jobs for millions of Americans. One key aspect of the proposal was the possible reduction of regulation for startups and especially crowdfunding models.
What change can this proposal bring?
In short, startups and small businesses will be able to raise equity capital a lot easier, both in terms of cost and time.
The bill proposes that an unlimited number of investors can invest up to $5 million in a private, non-listed company. However, each individual investor cannot invest more than $10,000 or 10% of their annual income in such a company.
The proposal also removes the ban on general solicitation which is currently a major hurdle for crowdfunding equity capital.
So what next?
Hopefully the UK follow suit and open the way for a new funding revolution!