What’s eating the SEC? The SEC’s delay of the Jumpstart Our Business Startups Act (or JOBS Act) is unconscionable and a major obstacle for small businesses and lean start-ups in search of alternatives to the strict terms of banks. How long must we wait for the regulations to be put in place so that the JOBS Act is the law of the land?
The passing of the exemption in the JOBS Act is generally regarded as adding a sense of security to crowdfunded platforms (CFPs). The key statistics of crowdfunding show that the JOBS Act would be a boost to the economy, but without those certainties, we are only witnessing a fraction of the uplift that CFPs could provide.
By mid-2012, those earning over $100,000 per year were the most likely to invest in startups through crowdfunding, according to the American Dream Composite Index. And according to last May’s Crowdfunding Industry Report, CFPs grew at a 63 percent compounded annual growth rate over the last three years.
All told, crowdfunded campaigns launched in 2012 raised 20 percent more on average than they did in 2011. Further, the campaigns grew shorter in 2012 meaning that it’s getting easier to raise money through CFPs. And this year, crowdfund pledges are expected to double.
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