Crowd-funding. It sounds like something out of a rock concert or a march on Washington. Actually, it’s a way for small businesses to raise money, and it’s about to get a big boost from Washington.
Under a bill that passed the U.S. House of Representatives on Tuesday and that’s expected soon to be passed into law, start-ups can raise up to $1 million a year by pitching to thousands of small-dollar investors online with little disclosure beyond a rough business plan. (They can raise up to $2 million if they provide audited financial statements.)