I believe that crowd funding and crowd investing will have a profound effect on entrepreneurship and on the economy. Crowdfunding will allow regular investors to take positions in early stage startups -
We are lucky enough to have spoken with David J. Paul, co-founder and chief strategy officer for Crowdfunder. Crowdfunder is a pioneer and a catalyst in the idea of crowdfunding. We have already seen how using the power of people to provides funds for political, non-profit and artistic projects has opened new paths for activists and artists. Now, investors are going to get a turn.
We interviewed DJ about how using the power of crowds to invest in startups could change how we do business.
When will crowd funding, or crowd investing start in earnest?
Congress passed the law in late March and the President signed the bill in early April, which gave the Security and Exchange Commision the authority to make the regulations for the industry by the end of the year. So the soonest we will see crowd investing in earnest will be in early 2013.
How is Crowdfunder positioned to facilitate crowd investing?
Crowdfunder will be a full service Crowdfunding portal which will offer start-ups, entrepreneurs and small business direct access to capital to build their business through various different types of securities, while also offering investors of all economic groups the opportunity to invest in small and start-up companies.
How is it different from current crowd funding services, such as Kickstarter?
While Kickstarter’s crowdfunding campagns are limited to donation and incentive based, CrowdFunder campagns will allow issuers to actually raise capital through the sale and issuance of equity and debt securities — much like bigger companies are able to raise money through IPO’s.
How do you think crowd investing will affect the economy?
We think crowdfunding will have a real and significant impact on the American economy, as we will be helping to facilitate getting capital into the hands of start-ups and small businesses which have historically been the biggest and best source for job creation during every significant employment down-turn since the Second World War.
If you’re interested in signing up as a Crowdfunder member just sign up here.
Business Strategy, Internet, Investing, Money, Online Investing AI, Success