Thursday, March 14, 2013

Here's a précis of the proposed JOBS Act. Title III would allow crowdfunding portals such as Kickstarter to allow crowdfunders (you) to actually invest. That's important, because right now, if you invest in the Veronica Mars movie, all Rob and Kristen can give you is schwag and perks. Under the new act, they can promise you a return on your money. If there are 32,000 people who'll pay for a PDF of the script, there must be a lot more people who'd gamble some of their spare cash that the new movie will be a hit.

The portal has to jump through some hoops, but nowhere near what companies now have to jump through in order to raise investment money through, say, a boiler room operation. Those are a colossal pain, and involve yards of expensive legal paperwork. The $1M funding limit is a bit low, but it's a start.

12:01 PM

2 Comments:

There are already a bunch of platforms that do this:

http://en.wikipedia.org/wiki/Comparison_of_crowd_funding_services#Business_ventures

I wonder how many new ones we'll see after JOBS passes.

By  Megazver, at 5:14 PM  

The JOBs act passed almost a year ago. The SEC was supposed to have approved the rulemaking by now (8 months ago, actually), but they're dragging their feet.

Given that the head of the SEC resigned, it's unlikely we'll see the JOBs act actually go into effect for quite some time, if ever.

By  Ryan Paige, at 5:51 PM  

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