Washington, DC – Oregon’s Senator Jeff Merkley issued the following statement after President Obama signed into law the “JOBS” Act, which includes an amendment he sponsored to provide for crowdfunding. The crowdfunding amendment, cosponsored by Senators Michael Bennet (D-CO) and Scott Brown (R-MA), allows small businesses and startups to raise capital online, while instituting strong protections for investors:
“I am very pleased that my crowdfunding amendment is now law. Crowdfunding opens up exciting new opportunities for small businesses and startups across America to raise capital from investors online. The potential is enormous. Entrepreneurs, who previously had to rely on capital from angel investors, will now be able to receive small seed investments from a larger group of investors to create new companies and jobs.
“Exciting new opportunities usually come with risks, and crowdfunding is no exception. The original House version of the bill paved a path to predatory schemes. It required no information to be presented, and if startups put forth information, there was no requirement of accuracy. The balanced approach we put forth with investor protections will provide a strong foundation for success.”