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The element that has most small-business advocates excited is the crowd-funding provision, which institutionalizes a form of financing that is, on a small scale, much like venture capital investing. A company can raise up to $1 million from investors while providing much less disclosure than required by companies seeking to become publicly traded.
Steve Case, the former America Online executive who now heads a private foundation and who campaigned for the crowd-funding measures, said in an interview that while the Internet played a significant role in the lives of most people, “the ability to use that platform to leverage investment has been limited.”
“This democratizes the access to investments,” he said, for companies and for investors.
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