Brajeshwar

1-min read

Tech Startups get much-needed Funding Boost with JOBS act

Tech startups just got a much-needed boost in processing power, with the new JOBS legislation passed in congress. The Jumpstart our Business Startups (JOBS) initiative currently being legislated into the US economy passed by a landslide and will vastly alter the startup entrepreneurial and investment landscape.

This new legislation, passed with a vote of 380-41, will remove some of the ridiculous red tape that startups are currently forced to endure when seeking funding. It will also allow young and small companies to go public sooner and allow for crowd-sourced funding, enabling startups to gets funds from small internet-based investors. Track the entirety of the JOBS legislation.

Under the JOBS act companies looking for funding will no longer need to do so under cloak and dagger, nor contrary to advice from their lawyer. Funding-seeking companies will now be able to post information about their crowd and other funding efforts on their websites and social profiles.

Opponents to the new law object on grounds that opening up very public opportunities for investment in startups will open the public up to increased risk in consumer investment and increased vulnerability to fraud via unmanaged crowd-sourced funding.

Investment fraud and scams may pop up on both sides of the fence though. Small-scale internet investors could be ripped off by investing in risky, possibly fraudulent investments, while at the same time funding-seeking businesses may be taken advantage of fraudulent funding opportunities – especially now that their lawyers will have backed off on legal advice, now that public funding is no longer a legal matter.

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