Crowdfunding for Clean Technology

The JOBS act is not without controversy as it loosens some regulations originally intended to protect investors. Crowdfunding is the collective cooperation and trust by people who network and pool their money and other resources to support efforts by other people or organizations. 

Crowdfunding, while not without risk to investors, makes it possible to get capital moving again in communities that otherwise would remain stagnant.

Prior to the passage of the new law the Securities and Exchange Commission (SEC) could not allow companies to publicly advertise for investors and only private equity investment from accredited investors with $1 million or more in assets. Many start ups were left with little to no way to find investors. Crowdfunding will allow a legal way for a startup to raise a significant amount of money.

Under the new law businesses will be able to raise up to $1 million from Crowdfunding without having to report it to the Securities and Exchange Commission, or up to $2 million if the company provides the investors with audited financial statements. Individual investors are limited to investing up to $10,000 or 10% of their annual income, whichever is less.

The Wall Street Journal recently published an article presenting arguments in support of and against Crowdfunding that readers may find informative.

Business Alliance for Living Economies (BALLE) has a great three point illustration that explains howcrowd funding works. BALLE has been working successfully in Bellingham to grow their local economy. In the process they have been transforming the way people live work and play into a sustainable community.

There will be a BALLE conference in Michigan May 15-19 with a focus on how to accelerate community capital.

If there is an individual or group that decides to go to the conference and would like to write a guest blog on what they learned please contact me atwdipeso@shorelinegreenbusiness.com