In what could be the major turning point in the history of evolution of new funding and support platforms for start-ups and early stage ventures across the world, the US House of Representatives on 2nd November 2011 passed the ‘Entrepreneurs Access to Capital Act’. This makes it easier for businesses to raise funds through ‘Crowd Funding’. The legislation will now allow start-ups to use ‘Crowd Funding’ to sell unregistered securities as long as the total amount raised is USD 2 Million or less.
While there will be no immediate impact in India, as the regulations for Crowd Funding are still not defined – but for sure it sets a benchmark and could finally open new avenues of funding support for hundreds of entrepreneurs in the country – wherein the support for early stage ventures is still nascent.
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.