|In the spring of 2012, President Obama passed an act that will drastically alter the landscape of crowdfunding platforms. Until April 5, 2012, a small pool of existing crowdfunding sites were only permitted to operate on a reward or donation basis, essentially offering a product, discount, or enticement in exchange for monetary funding. With the launch of the JOBS Act, short for Jumpstart Our Business Startups, the ability for the general public to receive company equity in exchange for funding is now a possibility.|
business plans are rejected 98% of the time by Venture Capitals when they can manage to get an introduction, but also because U.S. banks according to the Small Business Administration, held $607 billion in outstanding business loans of $1 million or less during 2011, which surprisingly enough, represents $100 billion less than in 2008.With the current state of the recession and the rising numbers of unemployment, crowdfunding could be a great asset to our country’s economy. These portals could serve as a great vehicle for investing in small businesses, which are accountable for creating 65% of the net new jobs over the past 17 years. As the Co-Founder of RockThePost, the leading crowdfunding platform for entrepreneurs and small businesses, I have seen just how effective the power of the crowd is.