The signing of JOBS Act has opened numerous opportunities for the startups as well as the investors. With the addition of the crowdfunding feature, the basic crowd around the world can now be a part of investment solutions for entrepreneurs in exchange for the said benefits in terms of shares, equity or tokens. Hence the law entitles anyone any everyone to invest in a startup. Visit http://www.microventures.com for details on crowed-funding.
However to enjoy the benefits of crowdfunding, the platform has to be registered with the US Securities and Exchange Commission. There are certain rules and regulations to be imposed which will be passed by 2013. Hence till 2013 it is illegal to make the CFI the amendment is yet to be passed. In the meantime, they say consider and fulfill certain requirements that were listed in the bill.
Another good provision given through this bill is the solicitation. Startups can solicit their deal and spread the word to a larger audience, making more investors aware about the plans. The catch is that only those investors may participate which has the accreditation by Securities and Exchange Commission.
The US SEC warns to make a complete study of the investment any of the investor is going to make. It is very important to thoroughly know the plan and the loopholes that may lead to the failure of the venture. Every step is crucial in investment and what needed is keeping your eyes and mind open. In crowdfunding, a variety of people are liable to participate, each one should be clear about the viability of the project. They should have regular discussions and solutions over any problem that arises. This would minimize any chance of the failure of the project and would certainly maximize the chances of getting higher returns out of it.
