Saturday, February 25, 2012
by Kevin Lawton
In the next few months, I predict a U.S. presidential candidate will fullyendorse crowdfunding. And that endorsement will earn the candidatemillions of votes, and a tremendous amount of the network effect thatcrowdfunding participants are so versed at. Why? Just for starters,Kickstarterexpects to provide more funding than the National
Endowment of the Arts! Even as VCs aremassively abandoning seedfunding,crowdfunding and peer to peer lending have become a globalmulti-billion dollar power house.In November of 2011, The U.S. House of Representativespassed acrowdfunding bill , with overwhelming support. By most accounts, thebill was friendly to crowdfunding and cut out much of the red tape thatusually accompanies financial bills, thanks in large part to its author,Congressman Patrick McHenry. It
creates “a crowdfunding exemption
from SEC regulations for firms raising up to $2 million, with individual
investments limited to $10,000 or 10 percent of an investor’s annualincome.”
And as a bonus, exempted crowdfunding investors from the500 investor limit before public company reporting kicks in.