This is something that I’ve been wondering for a long time – why do we still, in this day and age – have this insane rule dating from the Great Depression regarding having to be, basically, rich, in order to invest in a company? There are so many exciting startups that are out there that your everyday joe would love to be a part of, but due to some arcane rules from another time, people are simply blocked from investing in businesses they might like to see succeed one day. A huge, whole swath of the population makes less than $250k a year, has less than $1M in assets, but would love to invest a few bucks in something they love.

Just look at Kickstarter and Indiegogo for example. While technically not real crowdfunding, since the “investors” aren’t getting anything back but product or a mention, these sites success is an indicator that there is a huge appetite for true crowdfunding.

One of the few things that this administration has done for the economy that I agree with is the JOBS act, which will, finally, after nearly a century, allows investments by the non-rich into the companies they love, AND possibly get a financial return from. Imagine the massive sea of funding which is out there for these startups to tap, which is being held back by this crazy rule (I know, you guys are thinking – “Boy, Chris, tell us what you really think of the Securities Act of 1933)

Of course, like anything which seems like disruptive change which could actually benefit the economy for the little guy, forces are coalescing to hold this  law back from being implemented. Yes, the law had been in place for a year, but is yet to be rolled out. Why? Well, as usual, under the guise of protecting the “little guy”, they continue to try and work the law so that the little guy is shut out, yet again.

Let’s do what we can to get this law implemented – I wouldn’t be surprised to see a huge upswing in the economy just from something like this finally happening.

One year ago, President Obama signed the Jumpstart Our Business Startups Act into law. So, why isn’t “equity crowdfunding” a reality for startups and regular people who want to support them, in the U.S.?For the unfamiliar, equity crowdfunding–under the JOBS Act–allows startups and small businesses to raise up to $1 million in equity funding online, through sites registered with the U.S. Securities and Exchange Commission.Broader access to capital could help entrepreneurs when loans aren’t favorable, or they lack connections to deep-pocketed angel and venture investors.

via On JOBS Act Anniversary, Why Can’t Everyday People Invest In Startups? – Venture Capital Dispatch – WSJ.