The Small Business Network Supports Crowd Funding

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On April 5, 2012 President Obama signed The American Jobs Act into law legalizing crowd funding. In the past, crowd funding sites had some success stories and did not have to report to the SEC. Now crowd funding sites are growing in numbers and supporting all types of small organizations.

On April 5, 2012 President Obama signed The American Jobs Act into law legalizing crowding funding. Crowd funding allows small businesses, nonprofits, and start-ups to get access to capital by receiving donations online from supporters around the world. Crowd funding is another option for small organizations, with low credit lines, to get needed funds to innovate, grow, and hire more employees. According to Senator Graves (R-MO), The Jobs Act is a way to address difficulty in obtaining capital and will pave the way for small scale business to go public and create jobs. The bill also makes crowd funding sites more accountable by requiring them to register with the SEC, and companies to provide tax returns to investors.

In the past, Crowd funding has had some success stories. One of the first major success stories was in 2006 when Nemesea, a music band, raised $50,000 on a crowd funding site. Another phenomenon happened in the UK when Ebbsfleet United Football Club was bought by 26,000 people on February 21, 2008. The football club is now controlled by the crowd, who are making major decisions for the team. Lastly, a market test product was made a reality on Kickstarter. The Glif is an iPhone stand, and a tripod mount that only needed $10,000 to launch. However, 5,273 donated around $20 a piece to raise $137,417.

Crowd funding sites are growing in numbers to support different types of organizations like small businesses and nonprofits, to new talent such as musicians, book writers, scientists and other creative projects. Kick starter, Rocket hub, Peer backers, Profounder and Quirky are some popular ones. The Small Business Network supports crowd funding. Capital C “the crowd liberates itself” is the latest project sponsored. Capital C. will be the first documentary on the effects of crowd funding around the world. The producers include some noted film makers, writers, and researchers around the world. Film maker Timo Vuorensola, from Finland, who produced “Iron Sky“ and director Gregor Schmidinger of homophobia, from Austria is among the few. Interviews will be headed by, researcher Dan Alan Grier an instructor at George Washington University from Washington D.C. He will be accompanied by Jimmy Wales founder of Wikipedia. The Small Business Network plans to sponsor more crowd funding projects in the future.

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