Crowdfunding Begins in Wisconsin
Start-up companies in Wisconsin now have a new way to raise capital.
A new state law lets entrepreneurs raise up to $2 million, from individuals via the internet. "Crowdfunding" allows each person to invest up to $10,000.
Tim Keane teaches at Marquette University.
He says “crowdfunding” should help kick-start more private ventures.
"Often times there are many more good ideas than there is money to fund them, so this is a way for the state to generate more investing in companies presumably with a broader base of investors," Keane says.
Keane says there are plans to protect the interests of investors.
"It seems that the state is going to mandate having intermediaries emerge who will certify that these are legitimate offerings and put their seal of approval on them," Keane says.
Keane says there are more entrepreneurs now than he's seen in thirty years.
He teaches grad school business courses at Marquette.
Wisconsin's new "crowdfunding" law took effect June 1st.