Businesses Can Access Capital through Crowdfunding

Written by Innovate New Albany@InnovateNA12 years ago

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Last month, President Obama signed the Jumpstart Our Business Startups (JOBS) Act, a bill designed to stimulate the creation of more startups and support our nation’s vital small businesses by allowing them to raise capital from investors more efficiently.

Among the key provisions, the legislation allows small businesses and startups to harness “crowdfunding” as a means of accessing capital. As a result of the bipartisan measure, growing businesses will be able to access financing while maintaining investor protections. In addition to crowdfunding, it calls for the expansion “mini-public offerings,” and creation of an “IPO on-ramp” consistent with investor protections.

According to Tom Guy, who oversees Innovate New Albany, crowdfunding gives businesses in the New Albany incubator another route to raise capital in addition to traditional venture capital firms. He plans to offer workshops on crowdfunding when the federal program is implemented. Guy worked with Pelotonia to utilize crowdfunding as a fundraising mechanism for the annual cycling event that raises money for cancer research at The Ohio State University James Cancer Hospital and Solove Research Center.

For more information, visit this link.

Innovate New Albany, the city’s incubator for technology startups, entrepreneurs and small businesses, features 16,000 square feet of space within the New Albany Business Park’s Signature Office Building, 8000 Walton Parkway.