Interesting and possibly even table-turning news recently coming from USA regarding start-up crowdfunding.
Most agree that in order to create more jobs and help businesses expand, a change is needed in the way small businesses are being funded. “Time consuming”, “loads of paperwork”, “limited circle of players”, “tight negotiation terms” just to mention a few keywords.This is what the recent legislative actions at the federal level are now addressing. And hopefully very soon almost everyone can invest small amounts in small businesses in the US.
With the upcoming changes, though, trust and endorsement will become more and more important. Even if talking about small investments, the possible small investor needs to be sure where he/she is putting his/her money. More importantly into “who” the investment is being made. As a result, crowdfunding platforms that facilitate transparency and communication are likely to become the next big thing everyone will be talking about.
Read the referred story in the Economist: http://www.economist.com/node/21538770
