President Obama is expected to sign the JOBS Act into law today — a piece of legislation that allows businesses to receive investments via crowdfunding.
For start up companies and creative individuals, crowdfunding will become a very beneficial tool in their arsenal.
The Why:
Companies and individuals posting projects online through a crowdfunding platform can now try to raise funds without much cost involved. In most cases, crowdfunding may be the only chance for a company or individual to bring a project to the marketplace.
By using an online crowdfunding platform, companies and individuals will have instant access to an online investor base. Through this online community, they can instantly start marketing their project while simultaneously trying to raise funds.
Another unique aspect of an online crowdfunding platform is that companies and individuals can reach out to the online community and ask for feedback. By asking for feedback through an online community, companies and individuals can improve their project before it ever reaches the marketplace.
Ultimately, crowdfunding, and all of its benefits, is a powerful tool that can operate as an engine for small companies and individuals.
