Is Public Fundraising the Next Big Thing? : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Is Public Fundraising the Next Big Thing?

September 28, 2013

Is Public Fundraising the Next Big Thing?

London, England (rushPRnews) 09/28/13 — In the USA, the 1933 Securities Act placed a ban on the use of advertising to attract investors to private companies, but this ban has been very recently lifted, meaning even small start-ups can now advertise to consumers in an attempt to garner additional investment.

 

The aim of the ban in the first place was to prevent companies taking advantage of gullible people, who would run the risk of losing a lot of money into a business model they didn’t truly understand. With some stronger regulations however, the government now believes that they can boost the economy by encouraging people to get involved in business investment.

 

Already, we’re seeing companies spring up on the internet that aim to bring businesses and investors together in order to supply investment. There are a few different ways in which they’re profiting from this, from having a registration and administration fees, to taking a cut of profits later in the business’ life. These companies aren’t actually all that new; what’s changed is that they are no longer open to only registered investors with liquid capital of more than a million dollars, and they can appeal to potential consumers rather than wait for them.

 

What all of this means is that businesses will now be able to advertise on their products, websites and even social media platforms like Facebook in order to fund their growth. Some small businesses have already taken to adding stickers to their products which directly encourage investment. It’s a very modern process.

 

It’s important to note that we’re not quite at crowd funding yet. Those who invest will still have to be accredited investors, with verification still required, but the JOBS act of last year should encourage the government to work towards a situation in which more investors can get involved with brands that they like. Eventually, it’s hoped that small, forward thinking companies will be invested in by those who like their advertising style, and see potential, whether they’re a traditional investor or not.

 

With investment more readily available, small businesses will be able to hire companies that help optimise business processes such as Watt Works Consulting, and grow at a much quicker rate than they previously would have.

 

Public fundraising could have a major impact on the number of new businesses becoming successful over the next couple of years.

Media Contact Name: Amellia Hope
Main image credits: RushPRNews
About the author:

Digital News are business news afficianados, dedicated to bringing you the 'buzz' in the digital world. From business and eco to travel and sport, Digital News are in the know. 

Click here to see all news from this author/company

Filed Under: BANKING AND FINANCIAL NEWS, BREAKING NEWS, PRESS RELEASE

RUSH PR NEWS newswire and press release services at rushprnews.com / AH Marketing ahmarketinggroup.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Heero: the Perfect 3D Printing Partner Monitors & Controls Progress

Brisbane, Australia 07/21/16 · Heero: Aussie Design Team Launches Kickstarter for Device...

Wharton MBA Students to Release World’s First Consumer Smart-Mirror

NEW YORK 07/20/16 · A team of Wharton MBA students announced that...

Gallery Pouch Protects your Artwork During Shipping

Dallas, Texas 07/14/16 · Great protective packaging when shipping all delicate objects...

SAP Shows Further Commitment to the SME Market by Hiring New President

London, UK 07/14/16 · If, when you think about SAP SE's main...

What Credit Market Experts Are Saying about Brexit

London, UK 07/08/16 · In the initial hours after the leave vote...

Why Starting Off with VPS Hosting is a Wise Decision

London, UK 06/27/16 · You may have heard the term ‘VPS Hosting,...

FlipBelt Launches Hydration Belt for Runners and Fitness Enthusiasts

DENVER, CO 06/22/16 · FlipBelt announces new version of its wildly popular...

Kickstarter Fun: Wu & Y: Combines Art & Activewear

Brooklyn, NY 06/16/16 · Artistic Activewear Brand Raises 20K on the First...

Nursing Schools Struggle to Keep Up With Demand for Nurses

Peoria, Illinois 06/15/16 · Recent studies carried out by the Georgetown Center...

20 Dollars Discount On All PR Distribution Packages Now

San Francisco 06/14/16 · Time to share the joy again! We just...

A Look Back at RPRNmag Newsmagazine Crowdfunding Stories

San Francisco 06/09/16 · CROWDFUNDING A Look Back at Crowdfunding Campaigns: From Wood...