Crowdfunding, or investment crowdfunding, describes the practice of raising money over the Internet by soliciting small investments from numerous investors. An outgrowth of crowdsourcing, crowdfunding techniques have been popularized by ventures such as Kickstarter. But entrepreneurs are hampered in the use of crowdfunding by complex securities regulations that are expensive to comply with.
To streamline crowdfunding for smaller Washington state businesses raising money from in-state investors – and to promote economic growth and job creation – Rep. Cyrus Habib of Kirkland introduced House Bill 2023 in the current legislative session, and testified for it before the House Business & Financial Services Committee in a hearing Jan. 17, along with supportive entrepreneurs (for video, click here.). The committee unanimously approved the bill last week, and it awaits action on the House floor.