Read more...

Jonathan,

Awesome article. I completely agree with you that crowdfunding isn't for everyone & it's great to hear that from a founder of a crowdfunding platform. Everyone's so hyped up with this JOBS act thing-a-majig that I feel people aren't giving their honest opinions of it.... Like, even if after the SEC gets their hands on it, will it even be affordable for small businesses (in time & money)?

You also bring up a few things that I've never thought about (mainly the investors POV) -- tracking system to see how projects/small businesses are doing. Crowdfunders wanting guidance (not just $$$).

These issues you raise, do you see them as major hurdles to crowdfunding or simply something that's not being taken into consideration just yet, but will soon?

Great points. This article made me think more about the role of existing businesses in all of this. I can more easily imagine a start-up who's just happy to start any sort of business be willing to give up equity, but what interest would the local laundromat have or pizza shop? They already have a business & own it outright. They might be more comfortable just running a rewards based campaign. Why give out equity when you're clients are willing to help you for more pizza slices?

Hi David,

I just wanted to point out the hypocrisy of a lot of the discussion that is going on around the JOBS Act. It's a startup bill, not a "jobs" one - and that's ok. As far as whether there will be a day when people will invest in small businesses, of course I think there will be. The whole idea is innovation leads to success. When people realize that this bill isn't leading to the right success, innovators will do what they do best.

One example is a hyperlocal stockmarket. It's a super complicated idea to sift through and to implement, but if someone does that, we might be in a better position to buy and trade small business equity.

Hopefully what this bill really does is open the door to new ideas and over time we will see the results we are hoping for.

A hyperlocal stockmarket sounds like a nightmare to create, promote, & manage.

I *could* see 1 global platform where you can access local companies (or smaller). But let's face it, the money's in the big leagues... is it not?

Fist of all I would like to give a reply to Casey Armstrong about why a company would would give out equity when you're clients are willing to help you for more pizza slices?

First of all, not all business deals in physical products. Some business ideas are more service oriented. Some businesses might be looking for someone to work along side, maybe a mentor? The equity could be used to get what you need.

For more information Or if you're interested in financing go to fundedbyme.com/equity/