Today, President Obama signed the JOBS Act and opened up a new avenue of funding for entrepreneurs: crowdfunding.
At a ceremony in the White House Rose Garden, he reiterated his faith in American entrepreneurs to help our economy recover:
“I’ve never been more confident about our future. And the reason is because of the American people. Some of the folks beside me here today are a testimony to that. Day after day, they’re out there pitching investors. Some meetings go well; some meetings don’t go so well. That’s true for me, too,” he joked.
Congress must have felt the same; in an out-of-character move, it passed the JOBS Act with bipartisan support. Critics worry the act will create a bubble by pumping money into poor investments – or, worse, outright scams – so Congress included safeguards for investors that crowdfunding sites must comply with.
Another supporter, Startup America chairman Steve Case, believes the JOBS Act will give a chance to startups outside Silicon Valley:
“I expect crowdfunding to be particularly helpful to the entrepreneurs who often get overlooked because they are not located in the cities where venture capitalists tend to cluster or to the entrepreneurs who live in those cities, but aren’t able to break through and get noticed in what is all too often a somewhat clubby ‘who you know’ type business,” he wrote in a blog post.
Here is Obama signing the act: