Now that President Obama has signed the JOBS Act: Encouraging Start ups, Supporting Small Businesses. As of April 5, 2012 unemployed business minded folks can become entrepreneurs overnight.
What does all this mean for an startup? It will make it easier make it easier for startups to raise capital early-stage capital without all the fanfare and red tape bullshit involved. It relaxes some of the strict regulations on smaller companies going public.
What is very cool is that the average Joe or Jane startups can raised up to $1 million annually with small dollar donations. Individuals worth less than $100, 000 can invest 5% of their yearly income or $2000, whichever is higher into a startup. Basically, startups and small businesses would be allowed to raise money from smaller investors through web-based platforms.
Where does an startup begin to raise the capital to get their small business off the ground? Obviously not the Small Business Administration which is laced with thick red tape, regulations and stringent requirements that most people do not meet. Crowdfunding websites can help you find a community of small investors to fund your business. It is a new funding business model that some firms are starting to look at to get money for their start-ups or to take their business plans to the next level.
- Indiegogo - is a crowdfunding platform where people who want to raise money can create fundraising campaigns to tell their story and get the word out. Indiegogo is also a place to discover what people all over the world are passionate about and how to get involved.
- Kickstarter - raise thousand dollars for projects from the worlds of music, film, art, technology, design, food, publishing and other creative fields.
- Prosper - peer-to-peer lending an alternative to traditional loans and investing options.
- Quirky - offers product designers and inventors the chance to bring their products to market.
- Microventures - is an online broker-dealer that connects start-ups with more than 1,000 angel investors nationwide looking to make equity investments of $1,000 to $50,000.
- Cofundos - crowdfunds open-source software projects.
- FansNextdoor - is a platform for all creative professionals to promote and fund their projects together with their fans.
- ChipIn - is a web-based service that simplifies the process of collecting money from groups of people.
- MicroVentures - targets companies that are creating technologies, products and services in core areas, such as business products, consumer products, electronics, online technology, and more.
- Peerbackers - is for business owners to raise capital from their peers in small increments.
- Pozible - is an Australian crowdfunding website. Post your project and presell tangible and intangible rewards.
- ProFounder - is a crowdfunding platform for entrepreneurs to raise investment capital from their communities.
- 40Billion is the best free way to raise money for a business. Raise up to $1,000,000 in funding with friends, family, and social networks.
- Invested.in – gift reward website.