For nearly a decade now, public markets have been monopolized a handful of mammoth investment banking firms competing to underwrite the limited supply of large cap companies just so they can line their pockets by placing that stock in the accounts of their largest and most favored institutional clients. It was this practice, encouraged by antiquated regulation, that led to the demise of America’s economy. And the passage of The JOBS Act will put an end to this “circle of big” and once again allow capital to flow to our innovators, our entrepreneurs, our job creators!
This bill not only opens so many new doors to capital,but it also facilitates the procedures by which that capital can be obtained.Embedded in this legislation is Rep. Patrick McHenry’s“CrowdFunding”bill that finally brings our markets to the 21st century by allowing emerging private companies to raise capital via social media.This legislation also does away with other obsolete regulations such as the general solicitation and advertising ban for unregistered securities and the“500 shareholder rule”.All of these changes will enable companies to stay private longer,thrive in the private markets as opposed to dying a slow small-cap death in the treacherous public markets.
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.