With the provisions of the JOBS Act set to go into effect in early 2013, many small businesses are preparing to raise up to $1 million through crowdfunding.
Frustrated with their inability to raise capital through traditional lending and investment mechanisms, scores of entrepreneurs have turned to alternative funding streams in recent years. From bootstrapping to business contests, many small business owners have successfully funded their entrepreneurial visions with peripheral strategies — including crowdfunding.
So what is crowdfunding? It’s essentially the process of raising small investments from a large number of investors. The JOBS Act of 2012 made it possible for small businesses to crowdfund up to $1 million in capital and with the provisions of the act slated to go into effect in early 2013, small business owners are preparing to rake in dollars for expansion or other initiatives.
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