Moving beyond traditional methods of financing and accepting a new way of thinking
HOUSTON, TX, December 30, 2013 /24-7PressRelease/ — Crowdfund Mutual (www.crowdfundmutual.com) to launch January 2014 a rewards-based crowd funding platform, focused on uniting communities sharing common values.
In January 2014, the long overdue rules enacted by the 2012 JOBS (Jumpstart our Business Startups) Act will be in full effect. The Securities and Exchange Commission, after 18 months of sleeping on the job, recently issued the long awaited proposed rules that would allow small businesses to use crowd funding portals to sell interest in their ventures in order to raise capital.
Why is this critical to business across America? Crowdfunding gives entrepreneurs in communities that have historically been over looked by Venture Capitalist and Angel Investors, such as women and minority owned, as well as Hispanic and African American businesses, an opportunity to fund start-ups and raise capital for high-growth companies that would not qualify for traditional funding.
Prior to the enactment of these rules under the JOBS Act only “accredited investors” could invest in private companies. These rules allow …