The state of the crowdfunding industry: stronger than ever

President Obama Speaks after signing the Jobs Act April 2012Crowdfunding has once again become a hot topic in the financial world, given the recent one-year anniversary of the JOBS Act on April 5. The JOBS Act legalized equity- and debt-based crowdfunding in the U.S. However the SEC has missed congressionally mandated deadlines to complete the rulemaking process to the detriment of capital-seeking entrepreneurs.

While the parts of the JOBS Act that legalized equity crowdfunding for accredited and unaccredited investors may not be implemented until late this year, the crowdfunding movement has seen explosive growth.

The entire crowdfunding market grew by 81 percent last year, funding more than one million campaigns, according to Massolution, which recently issued its crowdfunding report for 2012. Western countries accounted for approximately 95 percent of the total market. Carl Esposti, CEO of Massolution, says that he expects the crowdfunding market to nearly double again in 2013.

 

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