Fund It in the Crowd: Congress Moves Toward New Tools for Startups and Investors

Mar 19, 2012
After a fit, a start and a dose of whiplash, legislation permitting startups to raise money through online crowdfunding is moving through Congress. The House has now passed two bills, including the Jobs Act this week, that would overturn a 70-year-old ban on small companies asking the general public for seed money.

A few days ago, the Senate began to catch up, releasing its own plan. The result is a bipartisan bill called the Crowdfund Act. If it passes, it could transform how companies get off the ground. One of these versions is likely to pass, but don't expect selling stock online to be as easy as registering your indie film project on Kickstarter.