How many of us have been feeling like George Bailey worrying how we’ll make ends meet, and without a Clarence the angel in sight? “It’s a Wonderful Life” the movie, starring Jimmy Stewart, is a classic holiday story of dealing with adversity, and it’s a wonderful example of crowd sourcing or crowd funding.
When George Bailey goes home at the end of the movie; family, friends and the townspeople of Bedford Falls, New York, collaboratively provide the funds to keep the Bailey Building and Loan Association open.
What is Crowd Funding or Crowd Sourcing?
“Crowd funding (sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowd funding occurs for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business or creating free software.” Wikipedia www.wikipedia.org/wiki/Crowd_funding
The U. S. House of Representatives has recently passed legislation to support crowd funding.
“The U.S. House overwhelmingly passed its first significant crowd funding legislation, in the form of H.R. 2930, the Entrepreneur Access to Capital Act. The bill (now in the Senate) amends the Securities Act of 1933, by allowing entrepreneurs to crowd source (online) up to $2 million per year in investment capital directly from individuals without having to register the investors with the SEC; however, the commencement and completion of the raise do need to be filed with the SEC. Entrepreneurs (the “issuers”) must provide potential investors with audited financial statements in order to qualify for the $2 million cap, otherwise you are capped at $1 million. Individual investments from crowd-shareholders are capped at $10,000 (or 10% of their annual income), whichever is less.” Huffington Post http://www.huffingtonpost.com/jeff-steele/house-passes-first-crowdf_b_1137789.html
Did you have to close your restaurant or bakery, and need funding to get a food truck rolling on wheels? Are you trying to start up a new business or non-profit?
Are you trying to save your struggling company? If you all of these questions apply, then consider crowd funding, crowd sourcing.
Here are some resources for more information on crowd sourcing or crowd funding:
www.crowdsourcing.org Crowd Sourcing
Let’s keep our fingers crossed that this legislation supporting new business growth is signed into law.