Maine House Approves Crowdfunding Bill

Now, I know that I typically write up on more substantive and longer pieces, but I thought this might be a great topic to write up on for one simple reason.

This would be a complete game-changer.

We’ve often complained about the business atmosphere of our state and how youth are beginning to leave in favor of states with a more business-friendly attitude. This might just be an answer to the woes that have plagued Maine in the business sector.

For those of you who don’t know what crowdfunding is, it is generally a loan or donation based platform, which raises a large sum of money from individually small donations from large numbers of donors. If 1000 people donate $25 to your cause, you suddenly have $25,000. Of late, organizations like Kickstarter have been increasing in popularity and usage, achieving the dreams of countless people and providing large amounts of aid for individuals in developing countries. This infographic breaks down some crowdfunding statistics:

 

As you can see, the estimated funds raised by crowdfunding measures exceed $5 billion. For a relatively young venture, this is not an insignificant amount. This is something that is only going to expand in the future-I have a tough time believing that people will buck the trend and revert back to other forms of philanthropy. This provides an easy outlet for people with disposable income to help the world and act philanthropically, without ever having to leave the house. There will always be someone out there with buckets of money wishing to donate some of it to a cause that they believe in.

And why shouldn’t Maine cash in on such an opportunity? Allowing for this allows for people to translate ideas into jobs. Many brilliant ideas are killed off without appropriate start up resources, meaning that Maine might very well have provided a cure to the ideational and business-minded gap that we find ourselves in when compared to other states. This could rejuvenate Maine business.

Furthermore, this is a completely bi-partisan project. What possible objections could either side have to this? If it doesn’t work, there isn’t much of a drain, if at all, on the Maine economy. Knock on wood-this might be foolproof. I would like to hear the lone objection to this, purely to understand their stance, but I have a tough time believing many would support such opposition.

Lastly, I’m surprised that this hasn’t been getting that much attention in the media. Actually endorsing this idea via legislation is a pretty big deal, and one that can have an enormously positive impact on the Maine economy. It isn’t like the House is just passively supporting it by not saying anything on the matter-they’re actively promoting this kind of behavior for businesses, which, if it goes through, could have a massively beneficial effect on the business climate of the State. Suddenly, the impossible is no longer impossible for countless entrepreneurs. They now have a shot to make their dreams a reality, as cliché as that sounds. Such positive business attitudes will only have a snowball effect if such projects are successful, and will likely lead to a better business climate in our state.

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