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4 Crowdfunding Cautions for Small Businesses

4 Crowdfunding Cautions for Small Businesses

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Published by: Crowdsourcing.org on Mar 29, 2012
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02/03/2013

 
4 Crowdfunding Cautions for SmallBusinesses
By:Laurie Kulikowski,03/29/12
NEW YORK(TheStreet)-- Small companies will soon have a new option to obtain financing through crowdfunding, but there are some cautionsto consider.
 
The so-called crowdfunding term essentially means pooling resourcesor money together from a group. Under the Jumpstart Our BusinessStartups Act, or JOBS Act, small companies will have the ability to raiseup to $1 million in equity on an annual basis through crowdfunding,without having to go through the rigorous disclosure process by the
Securities and Exchange Commission
.
To be sure there are a host of unknown answers regardingcrowdfunding, but as more companies take to social media to tell theirstory and gain a following, the strategy could become a major player inthe alternative financing sector.

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