Raising money for any new business is hard. Raising money for healthcare and biotech is even harder.
“Crowdfunding” promises to bring fresh life and capital into the healthcare and biotech industries. Introduced by the JOBS Act of 2012, Crowdfunding has become legal in stages: one version became legal in 2013, another became legal in 2015, and the third and last version, which be the most interesting for healthcare and biotech, will become legal in May 2016.
Legal technicalities aside, Crowdfunding is very simple: it allows early-stage companies to raise money using the Internet. And just as the Internet has transformed other industries – the hotel industry, the travel industry, the retail industry, the music industry, and others – it is transforming the capital formation industry. Connecting buyers (investors) directly with sellers (entrepreneurs), the Internet is reshaping how Americans invest, and how companies raise money.
Imagine developing a therapy for cystic fibrosis and viewing every American touched by the disease as a potential early-stage investor. That’s the power of the Internet, and the power of Crowdfunding.
- Bernard Devieux, Attorney, Flaster Greenberg PC
- William S. Skinner, Shareholder, Flaster Greenberg PC
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- William Skinner