Entrepreneurs Watch As Crowdvesting Bill Stalls In Senate

cayenne8 writes "The JOBS Act bill, passed in the house, has stalled in the senate. One section of this bill, which would legalize 'Crowdsourcing' in the U.S., as it is in other countries, allowing companies and startups (like indie film makers) to solicit investments for profit over the internet. This differs from sites like Kickstarter, which allow you to only donate money, in that this bill will allow the common citizen to invest for potential profit ($10K or 10% of income for investor limits) in new ideas and companies."

Comments

This bill is a terrible idea

[AcidPenguin9873]

This bill reduces oversight, regulation, and investor protection measures when companies want to raise investment capital. Please read the following:

http://baselinescenario.com/2012/03/20/cfa-institute-against-the-jobs-bill/
http://baselinescenario.com/2012/03/21/jobs-disaster-looms/
http://baselinescenario.com/2012/03/22/last-ditch-attempt-to-save-a-little-bit-of-investor-protection-in-the-united-states/

One of the biggest cause of the recent financial crisis was too little regulation of the financial industry. I do *not* want to do it again in 5 years.

Re:Actually, it's now been passed with amendments

[sexconker]

The House bill would allow individual investors to invest up to $10,000, or 10 percent of their annual income a year, whichever is less. The Senate bill would limit those investments to the greater of $2,000, or 5 percent of either annual income or net worth, if either figure is less than $100,000.

So for those of us in the $50k-$100k category that limits the investment to $2,500-$5000 instead of $5,000-$10000.

Doubles the number of investors needed.

A bit odd, that, since 10% of yearly income, while significant, isn't exactly something that should break you financially. Seems a bit overcautious.

It's not cautious, it's designed to prevent you from profiting off of investments or funding your business outside of a major stock exchange.
Any American investments greater than 1 pittance must first be taxed by banks and stock brokers, then left in their control to fuck up.

You're not unamerican, are you?