On Thursday, President Barack Obama proposed the American Jobs Act to create new jobs for millions of Americans. A key component of the proposal is to reduce regulation for startups, especially in crowdfunding.
Currently, websites like IndieGoGo and Kickstarter offer the opportunity for people to contribute small amounts of money to new ventures. Under the President’s proposal, startups could offer equity to small scale investors, which might fuel a new wave of crowdfunding startups. Larger startups would have reduced regulatory costs for going public, with “mini” public offerings. Companies participating could raise up to $50 million, rather than the current limit of $5 million.
High-growth entrepreneurial businesses have been responsible for nearly all of the net jobs created in the last three decades – so policies that make it easier for entrepreneurs to start and expand companies must be at the epicenter of any jobs effort. While Republicans and Democrats don’t seem to agree on much these days, they do agree that entrepreneurs hold the key to a bright economic future. Therefore, I hope both parties will put politics and partisanship aside, and work together to ensure the success of the next generation of great American companies.
Steve Case, chairman of the Startup America Partnership
The American Jobs Act would also seek to dramatically expand access to high-speed wireless internet, which also might offer more crowdsourced opportunities using mobile phones. While many analysts do not expect the bill to pass, its proposals may be a part of reforms to enable crowdsourced entrepreneurship in the future.