As we highlighted in a recent post on Google’s Policy by the Numbers blog, entrepreneurs need access to capital to make grow their ideas into successful companies. We are excited to see members of Congress working to promote entrepreneurs’ efforts to build new companies and create new jobs.
Last week, the House of Representatives passed the Jumpstart Our Business Startups (JOBS) Act with nearly full bipartisan support. The JOBS Act makes it easier for startups to raise capital. The crowdfunding provisions drafted by Congressman Patrick McHenry and Majority Leader Eric Cantor are particularly exciting and we applaud the House for its focus on helping to promote innovation and economic growth.
Crowdfunding means raising small amounts of money from a large crowd. Already, thousands of new companies have been funded by crowdfunding platforms like Kiva, Kickstarter, and IndieGogo. With the growth of social networks and other online platforms, crowdfunding is a promising investment model that would allow more Americans to invest in a new company simply by using the Internet to connect with entrepreneurs.
Earlier this week senators from both sides of the aisle -- Senators Merkley, Brown, Bennet, and Landrieu -- introduced the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2011, known as the CROWDFUND Act. President Obama has also expressed support for signing into law crowdfunding legislation.
Google was started by two graduate students in a garage with a check from one (trusting) investor. The next Google, Facebook, Apple, or Amazon could be funded thanks to crowdfunding legislation, and that would be a great thing for our economy.
In the Stone Age, as humans struggled to survive and build, they traded for food and tools. In the Age of Discovery, as explorers traversed the seas, they traded spices. And now in the Information Age, as the Internet becomes an increasingly robust business platform, all kinds of goods and services are traded online every day.
Thanks to the Web, trade has never been easier. Companies large and small can have easy access to a global marketplace. And in that way, the free flow of information without restriction across the Internet is contributing to growing economies across the world.
Fortunately, several countries and entities have recognized the critical role that open information flows play in trade and economic growth. Just a few weeks ago, the United States and Japan signed new information and communications technology principles which support open government and the free flow of information across national borders. That agreement comes on the heels of similar principles signed by the U.S. and EU and members of the U.S. business community last year.
We hope that more governments and industries will recognize the role that the free flow of information plays in the global economy. A consistent and transparent framework for cross-border flows of goods, services and information will help individuals and businesses around the world.
