The passing of the recent JOBS Act
included a small but extremely critical part concerning raising capital that will change the way many small businesses are formed and begin to do business in the United States from this day forward.
The section regarding “crowdfunding” allows for something that previously was unavailable: Offering equity investment in a small business, to a small group of people over the Internet, and advertising your request for capital to the general public. Until now, using the internet to ask for investors was only the province of charities and creative endeavors. Now, the average small business can take advantage of that avenue as well to reach a wider potential pool of investors without the red tape.