Almost everyday, there is news on activity in the White House, but most of the time, they don’t relate to minors. However, on April 5th, 2012, Barack Obama signed the Jumpstart Our Business Startups Act, also known as the JOBS Act. The Act has received praise from Google and other technology startups. But what does that mean to anyone with a dream, but no funding? Your hopes and aspirations, equipped with a dollar and a dream become a reality with crowdfunding.
Crowdsourcing, also called crowdfunding can be seen in action by visiting websites like Startups.co, crowdfunding.com, KickStarter, and gofundme.com. These websites promote people’s ideas and goals for fundraising, and offers anyone the ability to donate any sum of money to these aspiring people. From travel dreams to raising money for a medical treatment, crowdsourcing has no defined rules on who can use their website. With the idea only a year old, the true definition of crowdsourcing is in the hands of the users. If you’re feeling generous, you can donate your money to a good cause, or even start your own idea. Have a business idea, but don’t want to take out a loan? Crowdsourcing is perfect in that there are no interest rates, no fees, and you can meet your goal just by filling out a questionnaire on a crowdsourcing website.
When you finally decide to post an idea, you have the option of sending a thank-you note, a present, or any token of your appreciation to the people that helped fund your idea. If you’ve made a profit down the line, it may be a nice gesture to return some of the profit you made back to the people who helped jumpstart your idea. In reality, you are donating your money to these causes, with a possible gift in return. Keeping that in mind, people want their donations to be well-spent, so grow your idea to its full potential.
The downside to crowdfunding, if you choose to donate, is that you may be a victim of scamming. It’s hard for the donors to actually know how their money is being spent, and that’s an issue the Securities Exchange Commision is working on. Without the physical interaction between investors and people seeking investment, investors aren’t able to track what their money is being spent on. There have been sanctions on the amount of money allowed to be raised, where donors are allowed to donate up to $100,000 per year, and people seeking investments must require forms and paperwork to seek investments of $500,000 or more. Unless you’re looking to fund a startup with huge costs and need more than half a million, crowdsourcing can help achieve your investment goals.