How Crowdfunding will affect Investors

How Crowdfunding Affects Investors from The Startup Garage
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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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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.