HomeUploadUpload DirectHotlinkRandomAbouttheme toggle
Expand

Want to Buy Stock in Your Corner Bistro? The Gov't Opens Venture Capital Markets to the Masses

Views:978
@ReasonVids

In 2008, the online platform, Indiegogo, created a new way for entrepreneurs, artists, and charities to raise funds for their passion projects known as "crowdfunding." In exchange for donating money to a project, users generally receive a "perk," like a t-shirt or a coffee mug. In 2009, Kickstarter got into the game, and today new ventures get launched everyday thanks to the significant capital raised through these websites.

But what if instead of free DVDs and tounge scrapers for your pet new companies could offer their funders an equity stake in the business itself? Security regulations dating back to the 1930s have made it difficult for companies to trade equity for cash. But two years ago president Obama signed the U.S. JOBS Act, which is supposed to open venture capital markets to the masses.

Indiegogo plans to open its platform to these sorts of deals. The company's co-founder, Danae Ringelmann, says equity crowdfunding will allow regular people to make investments based on their direct knowledge of specific industries. "There's a whole world of people who know what they know, but they don't have the ability to invest in what they know," says Ringelmann. "Equity crowdfunding is going to give mainstream investors the same opportunities that Wall Street has had forever."

But will Washington actually allow this new approach to work? It took a full year and a half after the passage of the U.S. JOBS ACT for the Securities and Exchange Commission (SEC) to release a 585-page document laying out how it will regulate equity crowd funding. Among other things, companies that want to raise money on platforms like IndieGoGo will have to produce financial statements, provide "a narrative discussion of financial results," and file annual reports with the SEC. Compliance costs could chase away lots of promising ventures. And in a world of open information, why do we need the SEC getting in the way in the first place?

"If the SEC can just stay open and allow the platforms to experiment," says Ringelmann, "I think we'll get there."

About 3:21.

Written, shot, and produced by Jim Epstein.

Go to http://Reason.com/reasontv for downloadable versions and subscribe to Reason TV's YouTube Channel to get automatic updates when new material goes live.

crowd funding (website category)
    Thumbnail for Cheezburger's Ben Huh on Why We 'Snack on Information'2:55
    Cheezburger's Ben Huh on Why We 'Snack on Information'
    ReasonVids
    998 views
    Thumbnail for A taped phone call between Mia Farrow and Woody Allen has recently resurfaced that reveals the full horror of the Pedollywood director’s sexual abuse8:13
    A taped phone call between Mia Farrow and Woody Allen has recently resurfaced that reveals the full horror of the Pedollywood director’s sexual abuse
    AOUisgay
    617 views
    Thumbnail for 【予想外】トランプ関税緩和の裏で“◯◯”が急成長モードへ!半導体は囮? |  Mr.Kの相場解説【急騰株攻略チャンネル】46:29
    【予想外】トランプ関税緩和の裏で“◯◯”が急成長モードへ!半導体は囮? | Mr.Kの相場解説【急騰株攻略チャンネル】
    invidious
    91 views
    Thumbnail for Are We In the Final Days of Marijuana Prohibition?3:16
    Are We In the Final Days of Marijuana Prohibition?
    ReasonVids
    915 views
    Thumbnail for Kari Lake IMPLODES in DISASTER interview | David Pakman Show9:26
    Kari Lake IMPLODES in DISASTER interview | David Pakman Show
    invidious
    196 views
    Thumbnail for Guess again | FunnyMemeSpot0:06
    Guess again | FunnyMemeSpot
    invidious
    376 views
    Thumbnail for Simpsons la la la la la I'm in love with lovely Johnny0:14
    Simpsons la la la la la I'm in love with lovely Johnny
    clips
    1030 views
    Thumbnail for it’s finally here. it’s your turn to oil up. #duolingo #oilup | Duolingo0:17
    it’s finally here. it’s your turn to oil up. #duolingo #oilup | Duolingo
    invidious
    323 views
    Thumbnail for US Spy Operation That Manipulates Social Media Revealed1:00
    US Spy Operation That Manipulates Social Media Revealed
    bestofsaidit
    1035 views
    Thumbnail for Radley Balko Talks HuffPo, Nashville, OWS, & Cory Maye3:52
    Radley Balko Talks HuffPo, Nashville, OWS, & Cory Maye
    ReasonVids
    909 views
    Thumbnail for Mech.com Promotion | Mech.com Promotion0:41
    Mech.com Promotion | Mech.com Promotion
    invidious
    8 views
    Thumbnail for NASA's SpaceX Crew-8 Launch (Official NASA Broadcast) | NASA4:45:42
    NASA's SpaceX Crew-8 Launch (Official NASA Broadcast) | NASA
    invidious
    322 views
    Thumbnail for This Pawn Stars Knockoff is Worse than You Think. | Wizards with Guns3:41
    This Pawn Stars Knockoff is Worse than You Think. | Wizards with Guns
    invidious
    149 views
    Thumbnail for Easy Car Headlight Bulb Replacement Without Removing Fender | Genius Asian3:49
    Easy Car Headlight Bulb Replacement Without Removing Fender | Genius Asian
    cars.topic
    697 views
    Thumbnail for EVERY Pervert Kicked Off The Beach | BondiRescue32:53
    EVERY Pervert Kicked Off The Beach | BondiRescue
    invidious
    425 views
    Thumbnail for This sauce is the backbone of our restaurant | Fallow1:00
    This sauce is the backbone of our restaurant | Fallow
    invidious
    97 views
    Thumbnail for Pencils vs. Pixels | YouTube Movies1:23:49
    Pencils vs. Pixels | YouTube Movies
    Invidious2
    29 views
    Thumbnail for [한국장전] 결국 협상을 시작할 것이다! 하락베팅 만발! | 증시각도기TV1:00
    [한국장전] 결국 협상을 시작할 것이다! 하락베팅 만발! | 증시각도기TV
    invidious
    100 views
    Thumbnail for Cultural protips0:31
    Cultural protips
    bestofupgoat
    161 views
    Thumbnail for This is Paris, France...0:27
    This is Paris, France...
    AOUisgay
    548 views
    Thumbnail for Video shows driver using sidewalk to pass Brooklyn school buses | Eyewitness News ABC7NY1:41
    Video shows driver using sidewalk to pass Brooklyn school buses | Eyewitness News ABC7NY
    invidious
    462 views
    Thumbnail for Karen Refuses to wear a mask4:38
    Karen Refuses to wear a mask
    ItsjustMe
    1987 views
    Thumbnail for Have It All: Married People || Taylor Tomlinson 20248:11
    Have It All: Married People || Taylor Tomlinson 2024
    invidious
    129 views
    Thumbnail for CityNoticias 10 de febrero: El alcalde Galán evaluará durante 8 semanas el fin del racionamiento | EL TIEMPO1:00
    CityNoticias 10 de febrero: El alcalde Galán evaluará durante 8 semanas el fin del racionamiento | EL TIEMPO
    invidious
    133 views
    Thumbnail for Predictive programming from the X-Files4:26
    Predictive programming from the X-Files
    bestofvoatxyz
    821 views

points

Permalink
Reply
crowd funding (website category)
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle