I’ll save you the political diatribe that’s being debated in Congress and the SEC.
Allowing startups to secure seed capital via crowdfunding would not only be a boon to founders who desperately need financing to support their development and growth efforts, but would also open the floodgates to layperson investing like mutual funds did decades ago.
I’m all for it.
The biggest source of job creation in this country always has been and always will be startups. The Fortune 1,000 only removes jobs from the economy through downsizing and seemingly never-ending cost cutting (EPS growth has to come from somewhere).
And fostering technological innovation to help people save time or enjoy their time, while also creating new ways for consumers to spend money, will drive the global economic growth of the 21st century.
Whats the downfall here? Unsophisticated investors? Have you seen the abysmal performance of so-called professionals? How quickly we forget 2008…
The number one thing every startup needs, and 100% of them will agree here, is finding a source of capital. As any financier will tell you, cash is king.
Besides, if startups could acquire capital “passively” rather than spending three to six months away from their business courting investors, imagine how much more they could get done without burning through months worth of cash in the process.
We all use Facebook. What if It never was because they couldn’t afford to eat while Zuck was building the service?
Or take Pixar. Without Steve Jobs’s many investments over years that totaled more than $10 million, even when Pixar was hemorrhaging money, we never would have had Buzz Lightyear or WALL-E.
