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Jumpstart Our Business Startups Act

Crowd-Funded Investing: Risky for Joe Six-Pack?

Legions of small investors may soon unknowingly face a new danger -- crowd-funded investing.Under the Jumpstart Our Business Startups, or Jobs, Act signed by President Barack Obama last April, small investors will soon be able to make crowd-funded investments by buying shares in startups and small companies via fundraising portals on the Internet. Previously, these shares were only sold to accredited investors with a net worth of $1 million or annual income of $200,000, and a sophisticated knowledge of startup companies.Now state regulators and investing observers worry that these high-risk investments may result in a trail of losses for smaller investors who aren't used to navigating the less transparent, more complex startup market."More than half of all small businesses fail," says Bob Webster, a spokesman for the North American Securities Administrators Association. "Going into a crowd-funded investment, assume that it, too, will fail."Below, we offer some tips to follow before get...

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  1. Obama Budget's Impact on Small Business

    A look at what President Obama's $3.8 trillion budget plan translates into for small business.

  2. Will 2013 Prove the Success of the JOBS Act ?

    Americas IPO Leader at Ernst & Young Jackie Kelley says that 2012 wasn’t an accurate test of the JOBS Act ’s ability to encourage emerging growth companies to go public.

  3. A Look at the JOBS Act , One Year Later

    On April 5, the Jumpstart Our Business Startups Act will celebrate its one-year anniversary, though many of its policies have yet to be put in place.

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