A Critical Analysis of the Recent Georgia Initiatives to Promote Intrastate Crowdfunding Investments in Private Georgia Companies

6 Pages Posted: 7 Nov 2013

Date Written: November 7, 2013

Abstract

The investment criteria for “qualified” companies by the Georgia Fund is not based upon economic logic, if the goal is private sector job creation. The criteria of less than 20 employees, less than 3 years old, less than $500,000 in annual revenue, and less that $1,000,000 in aggregate capital raise is directly counter to the goals of economic growth and job creation in Georgia, which would target exactly the opposite criteria if the goals were economic growth and job creation. The statistics on capital investments in private technology firms indicates that the mother lode of jobs is created by companies that are 8 years old, which need about $1.5 million in capital. If these companies obtain the capital that they need, their job creation goes from about 20 jobs to about 40 jobs, per company.

Keywords: Georia, crowdfunding, JOBS Act

JEL Classification: O10, O20

Suggested Citation

Vass, Laurie Thomas, A Critical Analysis of the Recent Georgia Initiatives to Promote Intrastate Crowdfunding Investments in Private Georgia Companies (November 7, 2013). Available at SSRN: https://ssrn.com/abstract=2351173 or http://dx.doi.org/10.2139/ssrn.2351173

Laurie Thomas Vass (Contact Author)

Gabby Press ( email )

620 Kingfisher Ln
Sunset Beach, NC 28468
United States
9199754856 (Phone)

HOME PAGE: http://www.gabbypress.com

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