Teenage Crowdfunding

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University of Cincinnati Law Review

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Schwartz, Andrew A.
crowdfunding; securities; JOBS Act; CROWDFUND Act; teenage; teen; infancy; startup; entrepreneur; credit card; Internet; Banking and Finance Law; Business Organizations Law; Internet Law; Securities Law
article description
Teenage startups are in the public interest and should be encouraged, yet the federal CARD Act of 2009 eliminated credit card financing for many such companies, cutting off an important source of early-stage business capital for teenage entrepreneurs. Since then, however, Congress passed the CROWDFUND Act of 2012 which will allow teenagers to raise early-stage financing through Internet crowdfunding. Teens, being masters of the Internet, are well positioned to exploit this new opportunity, with the upshot being that securities crowdfunding may become an important way for youthful entrepreneurs to fund their business dreams.