Summary
Early this month, President Obama signed the JOBS Act into law, marking a new era for securities regulations. The law eases restrictions for small businesses to raise capital, most notably through the introduction of equity based crowdfunding, the process of aggregating small individual investments to meet a larger financial goal for a small business.

Description
Enter the JOBS Act and crowdfunding.Equity based crowdfunding opens a new pathway for funding these small businesses.The potential pool of investors will shift from the very narrow 1 percent,accredited investors in the eyes of the SEC,to"the American people" in the words of President Obama.The influx of potential new investors brings new capital,but more importantly, new perspectives.The"crowd"also provides benefits beyond capital to small businesses.For example, a pet food company that raises money via crowdfunding now has 150 new passionate consumers as shareholders,who can serve as a great sounding board for new ideas and as brand evangelists--a critical asset in consumer products.