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Biofunder founding member Sunny Barkats on efforts to set up rules on crowdfunding to help new businesses along with protecting potential investors.
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On -- thank you very much hey have you got -- crowd funding yet believe it or not the concept is so hot.
That total investments last year were estimated to reach a staggering two point eight million dollars but here's the thing as cool as it may -- to help fund a great new project.
It could possibly be risky -- -- risky proposition the SEC.
Even missed its own deadline imagine that to set up rules to protect investors and their money so.
-- you be sure your put your hard earned cash into credible project joining me right now with sunny -- markets and a founding call men member.
Of bio funder which is essentially crowd -- -- -- this is a fancy term for I'd go on the Internet -- have got a product I wanna raise money and I will give you equity.
In this project correct correct and I do can you do that right now power because the SEC missed the deadline is everything on hold.
Yes absolutely everything he's on the old right now there's no surprise that -- SEC missed the deadline.
And Matt Shapiro the former chairman of the SEC was not a big fan of the jobs act -- crop funding in particular -- nobody is surprised.
And we should point out the Obama administration this was part of that jumpstart our business startups jobs acting years ago a year ago.
So this was supposed to been in place by December there 31 of this year it's not.
What is the potential impact of people who wanted to get there they're entrepreneurial business is off the ground as well as job creation.
Well it's going to delay.
We're going to have to wait and see what -- new SEC chairman chairwoman he's going to do we need.
The belief fees that -- some much needed -- implementation.
-- the Dodd-Frank so I don't see that happening any time soon I believe that.
It would take.
At least another year before.
But the potential here -- those to raise he can raise up to there's a cap one million dollars for a start up business.
You think that cat should be raised to -- -- look at all of this right correct what are the benefits of raising that cap 'cause there's always that we gotta protect investor we gotta protect invest in -- might be show oysters out there.
Well the -- the VA CCs to protect investors indeed but it's also to -- silly -- capital formation.
Now the legislator real heist that.
They would be -- able to create jobs.
Only from the top the need to lapin from the bottom mop and that requires infusion of capital.
The banks are not lending enough and actual -- -- seeking -- -- who's going to put that money -- if not -- the.
-- that now right now the way the law is structured small time investor like myself by you know if you've got a 100000 dollar income you can only.
Go into this for 2000 dollars says so most people could survive if they you know -- that 2000 correct correct -- not a big a burden.
And this is actually wrapping up that there are countries -- -- -- -- correct England Australia.
And no quotas being detected so far.
All the minimal amount of fraud so I don't think it's that Greece Kiev think we have a track -- -- that we can lean on.
And look at that I admire I apologize that we have to cut this little bit short because of the breaking news out of Washington.
But it seems to me you know we're trying to create jobs in this country were trying to raise money for entrepreneur lowers this might be way to do it absolutely.
-- had believed that right well sunny markets thank you very much for joining us here on out money.
