Venture- Financing Syndicates Help Small Business

The federal government’s easing of general solicitation rules pertinent to securities registration has created more and faster opportunities for small business start-ups to raise investment dollars from third parties. These actions are the result of the J.O.B.S. Act passed in 2012. This means that companies can now publicly fundraise via their website, social media, or solicitation of online syndication groups. Online syndicates look to take funding positions in promising business start-ups. These early stage investor groups take ownership stakes in companies they fund unlike other so-called crowdfunding initiatives which may take product or in-kind benefits. These syndicates have been formed for specific single investments or for more open ended investing. Businesses looking to raise capital can find interested investors through  Google searches such as “Business Crowdfunding” or “Business Syndicates”.

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