By Alyssa Lafage | The Save Jersey Blog
The General Assembly has approved legislation that will help start-ups and developing businesses gain access to funding in New Jersey.
A-2073, inspired by Congressman Scott Garrett (R-5)’s federal JOBS Act and sponsored by Assembly Republicans Parker Space and Allison Littell McHose, will make it possible for investors to provide capital through a process known as crowdfunding.
“This could open up a way for many entrepreneurs to start their own businesses,” said Space (R-Sussex, Warren and Morris) after passage. “Maybe you know someone who is developing the next innovative idea in technology, or maybe you have a friend down the street who wants to open a coffee shop. This bill helps them achieve their American Dream.”
How? If you’re not familiar with the concept of crowdfunding, Save Jerseyans, it’s pretty simple. It allows money to be raised through small contributions made online by a large number of investors. Currently one of the most popular ways to crowdfund is through a website known as Kickstarter. One of the current major restrictions limiting the potential of sites like Kickstarter, however, is that there isn’t an option for fundraisers to offer shares of equity in return for contributions.
This bill endeavors to change that, allowing companies to give out shares, a great development which will incentivize potential contributors. For our economically-challenged state, crowdfunding has the potential to cultivate in-state economic growth by providing a unique way for entrepreneurs to not only create new operations but expand current operations.
Here’s hoping it becomes law sooner rather than later.
