Daines Introduces Bill to Enhance Crowdfunding for Startups

Press Release

U.S. Senator Steve Daines today introduced legislation to better the way entrepreneurs raise funds through crowdfunding, a way that prevents expensive regulatory red tape from keeping startups from getting off the ground.

Crowdfunding is the basic idea of raising money by relatively small contributions from a large number of people - combining the best of microfinance and crowdsourcing.

The Securities and Exchange Commission (SEC) issued a rule last October to give entrepreneurs an important tool in their belt to get their dreams up and running. As a result, the crowdfunding rule allows entrepreneurs to raise up to $1 million annually without having to incur the costs of expensive SEC registration.

"Startups shouldn't be penalized with costly paperwork by growing too fast," Daines stated. "This bill makes sure startups do not fall victims to their success by reaching the current crowdfunding limits too quickly. This bill is a win for Montana and all our entrepreneurs. Enhanced crowdfunding can better give Montanans the tools they need to create more good-paying jobs and allow them to pursue their entrepreneurial dreams."

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