Micro venture capital could emerge with new US bill

According to Forbes, micro venture capital relying on crowdfunding could quickly grow in the USA soon. Thus, initiatives such as the crowdfunding platform Kickstarter.com–just one of many websites now dedicated to matching projects with people who have some means and desire to support them are experiencing strong growth. What Kickstarter donors got in return were things like “thank you” credits in films, DVDs, tee-shirts, flowers, cookies, and concert tickets. Federal and state securities laws prohibit these startup operations from offering equity to their investors. The good feeling that comes from supporting innovation seems to be the main reward for many people who hand over cash to support the schemes of others online.

If startups could offer stock to their small-stake supporters, some (including Amy Cortese in this New York Times Op-Ed) predict that the practice of crowdfunding would explode, opening up far more resources to entrepreneurs, spurring innovation, and creating jobs. That’s exactly what the Entrepreneur Access to Capital Act (HR 2930) aims to achieve. The bill has the support of President Obama and was passed by an overwhelming majority in the House in November, but has been hung up in the Senate ever since. There is a good chance the bill will finally pass soon.

For more information: Crowdfunding Set to Explode with Passage of Entrepreneur Access to Capital Act
http://www.forbes.com/sites/techonomy/2012/02/29/crowdfunding-set-to-explode-with-passage-of-entrepreneur-access-to-capital-act/

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Twitter: @InfocomAnalysis