Exploring the Idea of the Atlanta Capital Growth Fund: Equity Crowdfunding as One Component of the New Atlanta Private Securities Exchange

Abstract

Capital investments in innovation made by private firms causes economic growth. The economic growth comes from the creation of new future markets, not productivity improvements in existing markets. The new products in future markets that are created by innovation create new flows of income and profits, which did not exist in the prior period of time.

To the extent that economic growth occurs at all, an iffy proposition given the risk of financial failure, it is enhanced by the idea that capital gains are reinvested in subsequent rounds of technology innovation.

The goal of the Atlanta Capital Growth Fund is to create a new private sector capital market mechanism that focuses on making the initial rounds of capital investments in Atlanta’s technology firms. And, then, acting as the mechanism to reinvest the first round profits in subsequent rounds of investments in technological innovation.

The fund must have a laser focus on making investments in technology firms in Atlanta that are engaged in the process of technology innovation.

This article explains how the Atlanta Capital Growth Fund acts like a building block for a bigger idea of the Atlanta Private Securities Exchange, how investments in technology are linked to regional economic growth, and offers insights into how such a fund could be created and managed.

Keywords: regional economic policy, crowdfunding, feser technological affinities

JEL Classification: M21, O18