Creating community progress through cooperative solutions.
This is about the future of San Diego, we focus upon renewable energy technologies, and our shared environment: food, water, and land use issues.
Crowdsource Funding Fundamentally Changes the Game
One of the most important and exciting developments in the last year was the 2012 JOBS Act, which sets up clearing houses for a new type of business funding called CROWDFUNDING. This is a break from the historic public stock market, in which investors had to be "Qualified" to buy principle shares in a private corporation. SEC rules limit investors in most corporations to friends and family plus wealthy investors who self-qualify with large personal incomes and assets that make them virtually indestructible financially.
The purpose of these regulations was theoretically to protect small investors from the common kinds of stock investment scams that many of our capitalist Wall Street types are well schooled. Ponzi Schemes look innocent compared to the kind of 'business investments' that can fool the novice investor, if such laws were not in place. However, the effect of these strict SEC accredited investor qualifications was to lock the average person out of the most lucrative capital markets. Making it impossible for the poor to benefit from our ever growing capitalist economy by investing in start-up companies.
The Rocky Mountain Institue now informs us about the next alterative, an exciting crowd-sourced funding plan, an example of which is a little company called Mosaic. Our future is bright, if you are smart.
Crowdfunding is nothing new. Companies such as Kickstarter have allowed individuals to fund everything from their next indie film to extensive out of pocket medical bills with pooled donations from family, friends, and other supporters. But thanks to last year’s JOBS Act, debt-based crowdfunding is now an option as well, in which investors come together to fund startups and small businesses in return for repayment plus interest from a company like Mosaic.