BIRMINGHAM, Alabama -- Startup companies such as those at Innovation
Depot soon might find it easier to get early stage investment under
legislation making its way through Congress.
The Jumpstart Our
Business Startups Act, better known as the JOBS Act, is a package of six
bills in Congress aiming to cut the red tape and regulatory burden
start-ups often face while trying to raise money and attract investors.
One of the bills would allow what is known as "crowdfunding," a
fundraising method in which a large number of investors can pool small
amounts of money to grow a new company.
The JOBS Act originated
in the House Financial Services Committee, chaired by U.S. Rep. Spencer
Bachus, R-Vestavia Hills. Bachus, one of the act's sponsors, spoke in
favor of bills on the House floor on March 7, a day before it passed. In
an interview Friday afternoon, Bachus said many start-up companies like
those at Birmingham's Innovation Depot and other incubators around the
country are a breeding ground for great ideas. But the young companies
creating new products and new services where economic growth originates
lack the funding possibilities available to larger firms.
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