How many jobs has Obama taken credit for? With every new law, new regulations, new government jobs, new crony requirements, long extended approval time, if any, and tons of forms, paperwork and rewriting forms. Costly in time, productivity and efficiency, not to mention costly to real job creation.
How man jobs lost has Obama taken credit for? m/r
"On our Startup Tour in 2010 we visited companies that had raised from no money at all up to $70 million, but the median raised was $40,000. If regulated equity crowdfunding requires a portal and a broker-dealer, and broker-dealer fees and revenue expectations are based on $700,000 deals, there is reason to believe they won’t bother at all with $40,000 opportunities.
So typical KickStarter deals won’t naturally transfer to equity crowdfunding and the vast majority of startup founders won’t receive any help at all from the JOBS Act."
JOBS Act crowdfunding is unlikely to help most startups - I, Cringely
November 17th, 2012
Earlier this year I wrote a series of columns about crowdfunding and the JOBS Act, which was signed into law last April with several goals, one of which was to help startups raise money from ordinary investors. Those columns were about the promise of crowdfunding and the JOBS Act while this one is about what progress has been made so far toward that end. For startups, alas, the news is not entirely good. Crowdfunding looks like it may not be available at all for the smaller, needier companies the law was supposedly designed to serve.
It’s one thing to pass a law and quite another to write rules to carry out that law. Title 3 of the JOBS Act required the U.S. Securities & Exchange Commission (SEC) to write rules for the so-called crowdfunding intermediaries or portals specified by the Act, to choose or create a regulator to monitor those new entities, and to write rules clarifying how deals could be advertised to non-accredited middle class investors.
My research so far suggests that while the rules are coming along toward defining the crowdfunding portals, the SEC is taking a conservative approach that will effectively disenfranchise most startups looking for capital. Specifically it appears the SEC is uncomfortable relying solely on crowdfunding portals to handle the deals and is leaning toward requiring registered broker-dealers be part of each crowd funded transaction.
Involving broker-dealers is not bad in itself, but it will change the nature of the deals, making them larger. There’s another entity to be paid, for one, meaning a lower return for the entrepreneur because of higher costs. ...
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