Crowdfunding has taken the cyberspace by storm. Through platforms such as Kickstarter or Indiegogo, innovators can pitch their ideas and like-minded individuals around the world are able to come together to pool their resources toward a specific goal. Crowdfunding advocates say it is an entirely new model that goes beyond traditional types of investment — but regulators do not always agree.
From non-profit causes to art projects, crowdfunding has been a powerful force. But in the U.S., and in many other countries, it encountered a serious barrier when it comes to supporting small businesses and entrepreneurs: 80-year-old securities laws which made it illegal to publicly solicit money from unaccredited investors. As a result, Americans could use their money to help entrepreneurs in developing countries through platforms such as Kiva.org but were unable to invest in their local restaurant or gym.
Even though there are, in theory, many sources of funding available to such small businesses, in practice banks are often reluctant to lend to them and angel and venture capital options are also limited outside of fast growing sectors such as IT. This made changing the antiquated law an imperative. But how to do it? The story of how crowdfunding became legalized in the U.S. is the story of how 3 guys changed the rules of the game in 460 days.
Congratulations to CIPE Chair Karen Kerrigan, who was named a top 100 champion in the 2012 
