Can crowdfunding fill stock market’s ‘black hole’ for startups and small businesses?

Fundnation

Can crowdfunding fill stock market’s ‘black hole’ for startups and small businesses?

Investors and securities experts say the public stock exchange has become inaccessible to many promising young companies.

Once a springboard for promising young firms, experts say the stock market largely stopped working for start-ups and small companies more than a decade ago, leaving what one investor calls a “black hole” in the business growth process.Some believe looming changes to the nation’s financing and securities laws could help entrepreneurs fill that void, but they are concerned new regulations intended to protect investors may water down the effect of the changes for capital-starved businesses.
“Sometimes, we are so worried about what can go wrong, but these markets have to get capital to entrepreneurs,” David Weild, former vice chairman for NASDAQ, said during an entre­pre­neur­ship and investment conference timed to coincide closely with the 50th anniversary of March on Washington for Jobs and Freedom led by Martin Luther King, Jr.“If we can’t get…

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