New York associate Robert Esposito was quoted in a Triple Pundit article titled, “Crowdfunding Links Small Investors To Social Enterprise Startups”. The article explained the result of a study on the first 50 issuers under the new Regulation Crowdfunding exemption that Rob co-authored with partner Marc Leaf.
In May, the SEC implemented rules that allow anyone with Internet access to invest small sums in startup companies, with a maximum permitted offering of $1 million per year. “Regulation crowdfunding” is similar to Kickstarter, except one major difference: “The sites connect funders with offerings. When you send money through Wefunder or SeedInvest, you get stocks or bonds instead of CDs and thank-you notes.”
“Crowdfunding is more likely to succeed when you have a good story to tell, and social enterprises have good stories,” said Rob. “Social entrepreneurs also embrace innovation quickly. And these kinds of businesses often find it difficult to raise early-stage financing through traditional methods, because traditional investors don’t see them as competitive. So it makes sense that they would turn to people who support their mission,” he added.Read “Crowdfunding Links Small Investors To Social Enterprise Startups”.