We've reported here about the JOBS Act, which is designed to make it possible for small businesses and startups to use social media and friends-and-family networks to raise investment or debt-based capital through "crowdfunding." U.S. entrepreneurs won't be able to take full advantage of this practice until the SEC establishes rules (expected by January 2013), but a report released yesterday shows the significant amounts of money organizations around the world have already raised using several different crowdfunding approaches.
According to the crowdfunding research firm massolution, 452 crowdfunding platforms worldwide raised a total of $1.5 billion for more than 1 million campaigns in 2011. Massolution reports that the majority of those campaigns were in the donation-based crowdfunding category, which is unregulated in the U.S., and that North America was the largest market for fundraising with $837 million raised by 532,000 campaigns.
But outside of the U.S., in places whereRead More »from Crowdfunding a Promising Option for Businesses Seeking Loans and Investors, Report Indicates