Document Type
Article
Publication
U.C. Davis Business Law Journal
Year
2013
Citation Information
Andrew A. Schwartz, Rural Crowdfunding, 13 U.C. Davis Bus. L.J. 283 (2013), available at https://scholar.law.colorado.edu/faculty-articles/443.
Abstract
One reason that economic development in rural America lags behind its urban counterpart is the persistent lack of venture capital for rural entrepreneurs. Geography deserves much of the blame, as angel investors and venture capitalists tend to live and work in metropolitan areas on the coasts, in places like Silicon Valley and Boston. Many rural areas are literally thousands of miles away, with the result that venture capital has rarely found its way to rural regions.
Recent federal legislation, however, has the potential to change this dynamic. The JOBS Act authorizes the sale of securities over the Internet to large numbers of investors, each of whom only invests a small dollar amount. This "crowdfunding" of securities is a promising means for rural entrepreneurs, as well as farmers and others, to access venture and business capital.
Copyright Statement
Copyright protected. Use of materials from this collection beyond the exceptions provided for in the Fair Use and Educational Use clauses of the U.S. Copyright Law may violate federal law. Permission to publish or reproduce is required.
Included in
Agriculture Law Commons, Banking and Finance Law Commons, Business Organizations Law Commons, Legislation Commons, Securities Law Commons