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September 15, 2011 / teamprofounder

ProFounder goes to Washington Part 2

Crowdfunding was the talk of the town today in Washington and we were honored to be part of the conversation. I testified on ProFounder’s behalf at the crowdfunding hearing held by the House Committee on Oversight and Government Reform and was incredibly energized to be in the company of such a bright and motivated group of fellow witnesses and Committee Members.

A video of the entire proceedings are here. My biggest take-away from the morning is that there is tremendous interest and excitement around crowdfunding as a means of capital formation, but many questions remain about how to best implement it and, specifically, how to mitigate the potential fraud risks. There was a very lively discussion around what responsibilities the platform, the purchaser, and the issuers should have and what liability they should bear. There were diverse view points represented, but unanimous opinion that there needs to be a fairly weighed balance struck between investor protection and access to capital.

Chairman McHenry announced that he officially submitted a crowdfunding bill yesterday (HR 2930). Congratulations to Chairman McHenry on the swift progress! I was truly impressed by the way he handled today’s hearing in a balanced way and infused it will aggressive passion as well as real empathy for the entrepreneurs who would be impacted by this bill.

So what do we do with all of this excitement now? I spoke to Doug Rand, Policy Advisor at the Office of Science and Technology Policy, this afternoon who is involved in the Start-Up American initiative and also engaged in the legislative work around crowdfunding. I asked him what ProFounder could do to push the crowdfunding bill forward and I wanted to share his response with you as a way of publicly committing ProFounder to fulfilling these requests and doing our part to be agents of change.

  1. Share stories of small businesses that have achieved success via crowdfunding and gone on to create jobs
  2. Work with a coalition of crowdfunding companies to propose industry guidelines for self-regulation.

And what can you do? You can also influence the success of this bill and here’s how:

  1. Amplify the conversation by blogging and talking about the issues, so that it’s so loud it can’t be ignored and great new ideas keep rising to the top
  2. Tell your Congressional Representative that you are looking forward to seeing them pass this bill (HR 2930)
  3. Send me (dana@profounder.com) your stories of how you were able to grow your business through funding from your community. Did you raise your first capital from friends and family, classmates, business partners, or customers and now have a thriving business that has created jobs? Those stories would be tremendously helpful to pass on.

I can’t wait to see what’s next! What an exciting ride – thank you going on this journey with us and inspiring us every step of the way.

Dana

One Comment

Leave a Comment
  1. Aakar Vachhani / Sep 29 2011 12:04 am

    I think if successful, the legislation would be amazing not just for Profunder but for crowdfunding in general and what it would for the startup ecosystem. I’ve shared some of my thoughts on the topic here: http://bit.ly/pw2LXS

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