"President Obama recently enacted into law the Jumpstart Our Business Startups Act, or more commonly known as the JOBS Act. Its main aim is to create more.."
In theory, hedge funds should be regulated under the Investment Company Act of 1940. However, hedge funds can’t stomach the said Act’s restrictions on redemptions, leverage, and incentive compensation. So they use a loophole which is an exemption to the 1940 Act.
"It's about one year since President Obama signed the Jumpstart Our Business Startups Act (the JOBS Act), designed to help new companies raise capital and go public.Since the JOBS Act passed, crowdfunding has been on a roll. But don’t believe the hype; it is far from a start-up fundraising panacea.
"The crowdfunding space is heating up fast around the globe in what many are predicting will be a trillion-dollar market."
The implications of investors shifting a small percentage of long-term investments to small business via crowdfunding are enormous. In America alone, a 1% shift would mean a $300 billion market for crowdfunding.
Later this year, equity crowdfunding is expected to go into effect, allowing non-accredited investors to invest in startups in exchange for ownership. EquityNet (www.equitynet.com), the original equity crowdfunding platform, has released a new patented platform technology that promises to revolutionize the crowdfunding industry. The new technology provides campaign and communication abilities for entrepreneurs combined with the industry's most advanced screening technology for investors.