Creating Jobs In Finance Through Crowdfunding
By Douglas Atkin, a portfolio manager with Guggenheim Partners’ Center Court Fund
Twitter’s initial public offering, valuing the micro-blogging site at about $11 billion, is an incredible achievement for a company that started in 2006 as a way to send 140 character status updates to friends via text message. In just a few short years, Twitter and other social media firms have forever changed how we communicate.
Another seismic shift that facilitated Twitter’s public offering is the law that allowed it to come public. Twitter filed its IPO paperwork confidentially, under a provision of the Jumpstart Our Business Startups Act, a 2012 law that allows startups to sell equity shares to the public with less costs, red tape and headaches than was previously the case. Among other things, the JOBS Act was intended to reverse the steep decline in IPOs seen over the past decade.
In the coming years, we could see a new wave of IPOs from another batch of disruptive companies, this time in finance, where a revolution is quietly taking place in how we lend, borrow and invest our money. Just as Twitter, LinkedIn, Facebook and other social media firms brought us closer together, allowing more collaborative communication, these new finance companies could reduce the need for the average American to rely on large corporations for their cash and capital needs.
~ Keep reading via Forbes.com