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How Crowdfunding will affect Investors

How Crowdfunding Affects Investors from The Startup Garage

Thursday afternoon, President Obama signed off the Jumpstart our Business Startups (JOBS) Act – not only will it be affecting startups, but it will affect investors as well. How so?

Remember when we talked about crowdsourcing a while back? Well the JOBS Act now officially recognizes the impact of a community investment and created some important rules and regulations to address certain needs and responsibilities. The bill is allowing the U.S. Securities and Exchange Commission 270 days to review crowdsourcing and deliver policies for the public. What do these 270 days mean to investors though? It means they may have to wait until 2013 to make a legal investment towards your startup.

Investors waiting until 2013 may have restrictions to the amount of money they can invest and may have to fill out more forms, including a suitability questionnaire which prepares you for the risks associated with crowdfunding investments.

To read more about how crowdsourcing will affect investors, read the full article at Mashable.


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