Crowdfunding programs such as Indiegogo, Fundable, and Kickstarter are currently responsible for the emergence of exceptional projects. The sites utilize the gains from pledges and popularity to create a competitive environment for the investors to acquire an interest in funding startup ideas and businesses (Toren, 2014). Entrepreneurs can definitely benefit from crowdfunding programs if their ideas are viable, lucrative, and interesting. This paper examines the ideology and importance of crowdfunding from Adam Uzialko’s perspective following the incorporation of the Jumpstart Our Business Startups Act (JOBS Act) into the US constitution in 2012.
According to Uzialko (2015), the enactment of the JOBS Act allows the use of equity crowdfunding as a suitable pathway for small enterprises to raise resources and funds from the nonaccredited investors. The Act allocates federal securities exemptions called the public offerings to assist the entrepreneurs to employ cost-efficient mechanisms that will appeal to the investors while tailoring the different desires of both parties. The exemptions allow the entrepreneurs to sell equities to any viable investors. The analysis provided by the author clarifies the basic postulates of the JOBS Act. The article also gives successful crowdfunding stories such as Cutting Edge Capital, Bissonnette Funding Solution, and Ben & Jerry’s.
A comprehensive overview of Uzialko’s article will help an entrepreneur or investor to learn the opportunities available in crowdfunding. The interesting and fascinating aspect is that it is quite easy to use the avenue for startups following the enactment of the JOBS Act. Crowdfunding is also beneficial to both parties, that is, the entrepreneur and investor since it caters for their customized requirements, debt, equity, and revenue shares (Uzialko, 2015). With the help of technology, entrepreneurs can pitch their ideas to lucrative or potential investors in various websites and through different means of communication. The aspect allows the entrepreneurs to acquire the chance to develop their business intentions even though they do not have adequate funds.
References
Toren M. (2014). 10 Crowdfunding Success Stories to Love. Retrieved July 31, 2016 from https://www.entrepreneur.com/article/232234.
Uzialko A. (2015). A Guide to Direct Public Offerings: Crowdfunding Without Title III. Business News Daily. See more at: http://www.businessnewsdaily.com/8532-a-guide-to-direct- public-offerings-crowdfunding-without-title-iii.html#sthash.wltPNjPT.dpuf.
