Sep
02

Peoples VC: Raising Capital for Small Business

It’s Labor Day and, while summer winds down with a long holiday weekend for most of us, it is hard not to think about the urgent need for more jobs; not only in this country but around the world.  With 60-80% of all new jobs coming from the growth of small business, supporting the development of ‘main street’ entrepreneurship holds the key to revitalizing communities around the world.  And yet main street entrepreneurs are struggling to find the capital they need to grow their businesses. I certainly can attest personally to this fact. Both Entrepreneur the Arts and iaeou would not exist today if I had not been able to grow my small business, over the past few years, to support the development of both through Lisa’s Clarinet Shop.  (And yes, the creative industries do have phenomenal profit potential, not to mention their ability to restore main street and help everyone rise. According to Americans for the Arts they return 7 dollars of profit for every $1.00 invested.  Seems like the creative industries are a mighty fine place to start a flow of investment, if you ask me.)

In April 2012 the JOBS Act offered some hope in addressing this large and unmet need for finding capital by creating an entirely new source of capital formation: “crowdfunding portals”; i.e. internet platforms to allow unaccredited investors to lend and invest up to $1 Million to individual startup’s and existing businesses per year. Just recently some progress has been made towards the implementation of the advertising legislation for the Business Startups Act (JOBS Act).

The 1933 and 1934 U.S. Securities and Exchange Commission (SEC) laws last July 10 were revamped for the 21st Century, as the commissioners voted 4-1 to remove the ban on advertising private offerings to the general public.  The new law will be effective Monday September 23 – 60 days after publication of the final rule to the Federal Register which occurred today.

In essence, the old laws were upgraded to allow the kind of public solicitation that the Internet and TV have made possible in the ensuing 80 years. In the simplest of terms, it means that entrepreneurs will be able to advertise their deals and reach out to more investors.

To read more about the progress that has been made read the rest of the Forbes article here. 

According to a recent article in the Economist, around the world almost 300m 15- to 24-year-olds are not working. PeoplesVC, Inc. is on a mission to help thosewith great ideas find the backing and investment their startup, emerging and already established business needs. Starting in the United Stated, through its web-based platform and network, capital, customers, infrastructure, and knowledge, PeoplesVC  hopes to become the leading growth engine for the “little guy.”

The market need to support the growth of small business is estimated to be hundreds of billions of dollars of capital. Nevertheless, success for these businesses clearly also requires much more than “just” money. These companies also need customers/revenue growth, infrastructure that powers success, and education that will enhance their development and growth.

According to the Peoples VC press release “for individual investors, the Company is building an easy-access, trusted, rewarding, and safe place to make quality investments and be part of a broad community investing in America’s growth and job creation. For businesses, the Company is building an integrated growth “ecosystem” for small businesses who exhibit high likelihood of success, which combines capital with sophisticated, full-service, full-circle components designed to further enhance their likelihood of success as businesses.”

To leverage itself to the highest value, the People’s VC is also building a nationwide set of professional .tv Producers that can provide essential services to its clients, the majority of whom would not usually have access to such services at a price they can afford. By building a valuable base of millions of potential investors and a powerful brand, PeoplesVC will then realize value from its scale and platform, including ongoing revenue relationships with thousands of small growth companies relying on PeoplesVC for capital, customers, infrastructure, and knowledge.

Additionally, they are launching their own internet tv network to promote emerging companies who are looking for investment.

PeoplesVC was founded by serial entrepreneur and startup veteran Akhil Garland, its CEO, and is located in Southern New Hampshire.

 

About Lisa Canning

“Vowels are to words what creativity is to the world~ basic and necessary.”

What motivates you to explore your creativity? Follow me @EntretheArts.

For daily inspiration and creative education join me on Facebook: https://www.facebook.com/EntrepreneurTheArts

Need a magic creativity wand? Let’s start with the clarinet and see what it inspires you to dream and do.

Lisa Canning is the founder of Lisa’s Clarinet Shop, IAEOU, the Institute for Arts Entrepreneurship (IAE) and Entrepreneur the Arts.

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