Could Facebook Raise Capital For Entrepreneurs?
Social networks, including Facebook, may become platforms for small businesses to raise capital, if the U.S. House of Representatives has its way.
Social networks, including Facebook, may become platforms for small businesses to raise capital, if the U.S. House of Representatives has its way.
The House Financial Services committee last week passed legislation that would remove a Securities and Exchange Commission rule that makes it harder for companies to raise money by seeking small contributions.
Removing the rule would allow for so-called “crowd funding” of new business entities through social networking sites.
The bill, H.R. 2930, also called the Entrepreneur Access to Capital Act, would specifically enable new businesses to use crowd funding to accept and pool donations of up to $1 million without having to register with the SEC.
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