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Crowdfunding bill passes Assembly

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article-2690564-1F9B7A5000000578-293_634x767

Crowdfunding bill passes Assembly

MARCH 11, 2015    LAST UPDATED: WEDNESDAY, MARCH 11, 2015, 1:21 AM
BY MELANIE ANZIDEI
STAFF WRITER |
THE RECORD

* Up to $1 million could be raised for a start-up through small pledges

Small businesses and start-ups in New Jersey soon may have another avenue for reaching investors.

Legislation approved by the Assembly on Monday would enable emerging small businesses and start-ups to find investors through crowdfunding, a technique very much like an online fundraiser. The bill defines the process as the financing of a business venture using the Internet to raise small amounts of money from a larger number of investors.

The legislation, which passed 75-0 with one abstention, would allow businesses to invite small investors to offer capital through a pledge. Once pledges for a project reached a predetermined limit, the businesses would move forward with the funding. The funds will be released only if the target amount is reached.

To Mario Casabona, founder and chief executive officer of Tech Launch — a technology start-up accelerator in Clifton — crowdfunding offers an alternative way for start-ups to gain access to capital.

“It’s a good thing for entrepreneurs,” enabling more investors to fund a business, he said in a phone interview Tuesday. But, he added, “it doesn’t make it easier.”

https://www.northjersey.com/news/business/assembly-votes-for-crowdfunding-1.1286379