Obama signs ‘crowdfunding’ bill

President Barack Obama signed into law the Jumpstart Our Business Startups Act (JOBS), a measure that includes U.S. Sen. Michael Bennet’s “crowdfunding” amendment.

Using crowdfunding, startups can raise capital online, including through social media, from multiple investors. Obama signed the bill allowing the practice Thursday.

Entrepreneurs can give information on their businesses and ask investors to contribute capital. The model already is used on websites such as Kickstarter, which raises funding for artists and films.

Bennet’s amendment includes investor protections such as disclosures about a company’s business plan, financial condition and potential conflicts of interest, according to the senator’s office. It also offers stronger supervision of crowdfunding intermediaries.
“Colorado is rich with entrepreneurial and innovative spirit, and our entrepreneurs need access to capital to help our economy get back on track and create jobs,” Bennet said. “The signing of this bill into law is good news for Colorado’s small businesses and start-ups, which are ready to grow with increased access to capital.”

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