White House Jobs Bill Mentions Crowdfunding as a Way to Create Jobs
Barack Obama seems to love the idea of crowdfunding – the collaborative financing of a project initiated by other people, usually via the Internet.
A recent post on the White House blog said that as part of the America Jobs Act, Obama will seek greater access to equity capital and fundraising through crowdfunding platforms, such as Kickstarter. The Kickstarter project has already helped fund over 10,000 projects, allowing entrepreneurs greater access to capital. Kickstarter is the largest platform in the world for crowdfunding creative projects and endeavors.
Now Obama’s new American Jobs Act is looking to extend the Kickstarter model to more high-growth companies to help fuel innovation and entrepreneurship. This move by the White House suggests that the Obama Administration values social startups, like Kickstarter, in spurring job growth.
Through the Startup America initiative, Obama is also seeking to raise capital through regulatory changes such as “reducing the disproportionately high costs that smaller companies face when going public, as well as raising the cap on ‘mini’ public offerings from $5 million to $50 million.”
The crowdfunding model has gained popular traction in these tough economic times, and its use in the public sector goes beyond the White House. Crowdfunding has been used to fund numerous projects, like a RoboCop Statue in Detroit. But these projects are hyper-local, and the White House is looking to expand the idea.
The idea of using Kickstarter in government is so nuanced that Funnyordie.com joked about the idea of Obama using Kickstarter to help fund the $14 trillion national debt. Check out this hilarious yet introspective parody video.
Companies – especially small businesses and budding entrepreneurs – need equity to grow and to create jobs, but with banks cutting back on loans, many entrepreneurs are finding it difficult to get funds to launch their ventures – and Obama’s Jobs Bill recognizes the potential for startups to raise money through crowdfunding and social media. Think this could work?