Contact
How to Reach us:
Sherwood Neiss – sherwood@startupexemption.com
Jason Best – jason@startupexemption.com
Zak Cassady-Dorion – zak@startupexemption.com
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Thank you for taking the time to visit our site and learn about Crowdfund Investing. We appreciate your support and rely on the crowd to make this a reality!
New Bill before Congress could create more jobs than anything yet so far – And no one is talking about it!
Bet you haven’t heard of bill HR-2930 – The Entrepreneur Access to Capital Act.
There is a provision in that act that in my estimation, if passed would create more jobs than anything tried so far in this Great Recession.
THE PROBLEM
There is no question that we are in the greatest capital crunch for entrepreneurial businesses since the great depression. Banks are saying no to just about everyone and the venture capital and angel market is very tight, to say the least.
Along comes a new bill that could change the way entrepreneurs raise capital.
Ask any securities lawyer about what are the rules for raising $10,000, $100,000 or even $1M and you will find two major obstacles:
1. You can only solicit the general public for money for a business if you are a public company or going public. Out of the millions of businesses in the United States less than one tenth of one percent are public or can afford the cost of going public. That leaves out 99.99% of all business!
2. If you are a private company (that 99.9%) trying to raise capital, you can only raise money from accredited investors. To be an accredited investor means you must have a net worth of $1M outside of your home or an annual income of at least $200,000. That only represents 3% of the US population!
THE SOLUTION
The prevision in this new proposed law says that anyone can solicit anyone else for capital for their business for up to $10,000.00 per person, no matter what their accreditation. And they can raise up to $2,000,000!
How did this all come about. It is all because of a new concept about 2 years old, called Crowdfunding. Crowdfunding is a new way using the internet and social media to raise capital for any kind of project or business. People join a crowdfunding site and use a video to describe what they want the money for and hope for the best. For the money they cannot sell any security or ownership but instead they give away things like, tee shirts, mugs, you name it. Look up crowdfunding on the internet and you will learn quickly what it is all about. In fact someone recently raised over $900,000 using this new social media concept.
Under the new law if passed, anyone can use the crowdfunding concept to give away equity in their business or project legally up to $10,000 per person.
Having been in the entrepreneurial financing field since I graduated from Wharton in 1961, I can personally tell you I have never seen such an opportunity for entrepreneurs to raise seed capital for their early stage business.
And we all know these types of business have created more jobs than any other type!
Please join me and contact your Congressmen and tell them to support this new bill.