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Rural Crowdfunding

13 U.C. Davis Business Law Journal 283 (2013)

U of Colorado Law Legal Studies Research Paper No. 13-18

13 Pages Posted: 20 Nov 2013  

Andrew A. Schwartz

University of Colorado Law School

Date Written: November 18, 2013

Abstract

One reason that economic development in rural America lags behind its urban counterpart is the persistent lack of venture capital for rural entrepreneurs. Geography deserves much of the blame, as angel investors and venture capitalists tend to live and work in metropolitan areas on the coasts, in places like Silicon Valley and Boston. Many rural areas are literally thousands of miles away, with the result that venture capital has rarely found its way to rural regions.

Recent federal legislation, however, has the potential to change this dynamic. The JOBS Act authorizes the sale of securities over the Internet to large numbers of investors, each of whom only invests a small dollar amount. This “crowdfunding” of securities is a promising means for rural entrepreneurs, as well as farmers and others, to access venture and business capital.

Keywords: Crowdfunding, Rural, Farming, Securities, JOBS Act, CROWDFUND Act, Financing, Startup

JEL Classification: K00, K2, K20, K22, K23, O16, O3, O38, O40

Suggested Citation

Schwartz, Andrew A., Rural Crowdfunding (November 18, 2013). 13 U.C. Davis Business Law Journal 283 (2013); U of Colorado Law Legal Studies Research Paper No. 13-18. Available at SSRN: https://ssrn.com/abstract=2356643

Andrew A. Schwartz (Contact Author)

University of Colorado Law School ( email )

401 UCB
Boulder, CO 80309
United States

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