Slava Rubin, co-founder of Indiegogo, a website where anyone can raise money, talks about the impact recent crowdfunding legislation will have on his firm and those looking for financing.
00:07 Slava Rubin: So, Indiegogo is the world's funding platform where anybody can raise money for absolutely anything.
00:13 Rubin: There's really four reasons why anybody funds anything, which is one, because they care about the person and their cause, or the idea. Number two is they want the perks. Number three, to be part of a community. And Number four is profit. See, 'till this law signed, the fourth wasn't an option. So, with it becoming an option and just bring a lot of funders into the market.
00:33 Rubin: The JOBS Act was signed earlier this month in April. We're going to need to just learn over the next nine months what the regulations are going to be. Talk to our customers and figure out how to move forward.
00:42 Rubin: We're very much trying to be involved with the government and the SEC to help identify these regulations. And some of the regulations, for example, is that a small business can raise up to a million dollars. If they're raising over $500,000, they have to have audited statements. I don't think that's very realistic in today's business economy. And it's definitely not going to become realistic, I think, with crowdfunding.
01:06 Rubin: I mean, in general, I think the JOBS Act is great. It used to be that only accredited investors, the rich, were allowed to participate in investments. And this really allows anybody to participate, which is very American.
01:20 Rubin: We now have thousands of active campaigns every month and are distributing millions of dollars, including many for-profit businesses that used Indiegogo.
01:29 Rubin: With the equity crowdfunding, there's gonna be a whole new type of competitor that who'll want to get involved. Many, several of them, have already been in contact with us, to want to work with us, to compete with us, to ask us how to make their platform for them. So I think more people will be able to get funding in that they'll ever did before. There's gonna be a lot of opportunities where banks to turn you down, credit cards aren't happening, or grant applications aren't filling the demand.
01:53 Rubin: And then also, sometimes people will decide to use crowdfunding instead of some of these options, and hopefully will become a big industry just like online commerce has become.