In April 2012, the Jumpstart Our Business Startups (JOBS Act) was signed by the President of the United States into law. The JOBS Act designed to encourage IPOs, eases restrictions on private placements, permits crowdfunding and increases ownership thresholds before companies are required to publicly register. Certain provisions of the Act became effective immediately, but the Securities and Exchange Commission (SEC) has yet to make a ruling on equity-based crowdfunding guidelines.
By reducing regulatory burdens on startups and small companies trying to raise capital, the JOBS Act has facilitated the legalization of crowdfunding, which allows small private companies to raise up to $1 million in capital annually from any investor . Crowdfunding minimizes the cost for the investor to perform legal diligence, background checks, finders’ fees and other such processes that make it prohibitively expensive to back innovations and ideas. This is where crowdfunding can be beneficial to both investors and entrepreneurs. The time is ripe for crowdfunding platforms such as MedStartr, a healthcare/Biotech industry specific crowdfunding portal.
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space,
Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
practice expertise and unbiased thought leadership.