The Congressional Committee on Oversight and Government Reform held a hearing on job creation and the Securities and Exchange Commission's efforts to implement the JOBS Act. Rep. Patrick McHenry (R-NC) chaired the hearing. RocketHub's CFO, Alon Hillel-Tuch, was invited to testify on the potential the "crowdfunding for equity" model holds for start-ups, job growth, and the US economy.
These are the key points RocketHub made to Congress:
1. Crowdfunding democratizes fundraising. - Alon's testimony: "Traditional sources of capital have strict guidelines regarding the nature of the businesses they support, and exclude a wide range of domestic businesses.
2. Crowdfunding will lead to job growth. - Alon's testimony: As shown in the July 2010 Kaufman Foundation report, startups are the job creation engine in the American economy.
3. Crowdfunding empowers investors. Alon's testimony: The JOBS Act enables small investors to provide support to capital seeking entrepreneurs.Crowdfunding portals and regulators are able to drive standardized and understandable terms across offerings.
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
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Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
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