To Mario Casabona, founder and chief executive officer of Tech Launch — a technology start-up accelerator in Clifton — crowdfunding offers an alternative way for start-ups to gain access to capital.
"It's a good thing for entrepreneurs," enabling more investors to fund a business, he said in a phone interview Tuesday. But, he added, "it doesn't make it easier."
For a small business, one challenge of having many investors is ensuring that it maintains communication with all of them, Casabona said. The legislation requires companies to provide quarterly reports to their investors.
The legislation’s Senate counterpart is waiting to be posted by the Senate Commerce Committee.
For the complete bill: http://www.njleg.state.nj.us/2014/Bills/A2500/2073_I1.PDF