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There is an untapped well of investment money up for grabs in the United States, according to an infographic by iCrowd. $1.47 trillion is spent every year on discretionary goods and services, but this money could jumpstart the economy if funneled into emerging companies. This opportunity for crowdfunding was created by the JOBS Act.
The Jumpstart Our Business Startups Act is not even one year old, but its philosophy on business growth has had public approval for a few years. Kickstarter, the most popular online crowdfunding platform, has launched almost 38,000 projects and raised $437 million since its founding in 2009. But, there have been limits to how prospective companies can raise funds. This is where the JOBS Act came into play.
Passing Congress relatively easily, both parties commended the bill as a smart way to mobilize small businesses and create jobs. It let more individual investors fund startups by lifting restrictions on equity crowd funding. It also delayed required registration with the Securities and Exchange Commission, saving money in the early stages of growth where so many businesses fail.