2,920 crowdsourcing and crowdfunding sites
Crowdfund Capital Advisors, an advisory, implementation, and education firm, recently released a white paper focusing on crowdfunding and its potential impact on the economy both in the U.S. and abroad.
The authors of the report, titled "How Crowdfund Investing Helps Solve Three Pressing Socioeconomic Challenges," are Jason Best, Sherwood Neiss and Davis Jones. They are among the industry’s heavy hitters. Best and Neiss lay the groundwork for crowdsourcing legislation that was eventually signed into law as the JOBS Act, co-chair the Crowdfunding Professional Association (of which Jones is a founding member), and are co-authoring the Crowdfund Investing for Dummies book.
Given the team’s intimate relationship with crowdfunding and the JOBS Act, it’s not surprising that the white paper begins with a background on how Best, Neiss and others were able to turn an unlikely idea into “one of the fastest bills outside of war legislation to pass through Congress into law in US history.”
After providing a behind the scenes look at how the JOBS Act came into being, the authors then turn to the real purpose of the paper – exploring “how governments can unlock the power of crowdfund investing by enabling companies to leverage the social Web to encourage community financing, community engagement, and business innovation.”
The authors discuss in depth how crowdfunding can create jobs and grow GDP, while dispelling some of the myths around crowdfunding. They also mention its potential effects on urbanization, writing, “as more productive workers choose to work remotely, often outside of major urban hubs, they move away from the traditional sources of capital for starting businesses… without crowdfund investing, venture capital is virtually unavailable to these remote workers.” While the report focuses mainly on the U.S., as America is developing a clear regulatory framework around crowdfunding, the authors also make it a point to discuss how crowdfunding can work in other countries.
The white paper is a thorough and thoughtful overview of crowdfunding, and a worthwhile read for anyone looking to get a better understanding of what effects it may have on the economy. The full report is available on the Crowdfund Capital Advisors site.