Originally posted on Gigaom:
Will so-called crowd-funding provide the next-generation of investment for clean power? The Senate’s version of the Jumpstart Our Business Start-ups (or JOBS) Act was planned to be voted on Tuesday, but has been delayed in the Senate by new arguments. That bill already had the support of Google (s GOOG), Steve Case, Angel List and many others, and we’d also like to lend our support for the bill from our small start-up Solar Mosaic in the clean-energy community.
The JOBS Act (or INVEST Act as the Senate has rebranded it) is a series of six bills bundled together to make it easier for startups to gain access to capital. The most exciting aspect of this bill is what it will do for crowdfund investing. In the age of online networks, it seems absurd that startups are forbidden from raising money through these networks or even publicly discussing the fact that they are raising money.
The JOBS Act would ease these regulations and allow startups to raise seed capital from a large number of individual investors. Rather than inviting fraud, crowd fund investing will bring more transparency to the market through regulations that require companies to share information and by literally inviting the crowd to scrutinize the merits of the investment.