Measuring the National and Regional Impact of Crowdfunding on the US Economy

By AltFi News on 23rd October 2014

Equity Crowdfunding

The CrowdDataCenter has hooked up with Crowdfund Capital Advisors in order to gauge the level of crowdfunding activity and its impact on job creation at a national and regional level. 

Measuring the National and Regional Impact of Crowdfunding on the US Economy

Crowdfund Capital Advisers were instrumental in putting together the JOBS act – which remains trapped in a regulatory holdup. When passed, the JOBS act will finally permit retail investors to put money to work via US equity crowdfunding platforms. The two entities have produced a collaborative, data-driven JOBSIMPACT score – a comparable measurement of how entrepreneur-friendly a given locality is.

Barry James, Founder and CEO of the Crowdfunding Centre, explained the new project:

"The JOBSIMPACT score indicates the effect on the local economy by assessing the impact on venture and job creation. It's proved extraordinarily revealing. We can see straight away that there are one or two truly stellar areas, such as Washington DC and San Francisco, where this new entrepreneurial ecosystem has taken hold, showing what it's capable of. Followed by some very promising challengers and the many in the middle. But there're whole cities and states that look more like a desert and it's, paradoxically, in these that the most pent-up potential most probably exists."

The tool is designed to empower local and national legislators. The capacity to rank an environment based on how conducive that environment is to entrepreneurial activity should allow policy makers to hone in on the locations where more legislative support is needed in order to foster innovation. The 100 US senators and top 100 city mayors will receive a JobsImpact briefing this week. The hope will be that those locations that are shown to be lagging will be encouraged to get behind entrepreneurial support systems within their respective jurisdictions.

The CrowdDataCenter’s latest “State of the Crowdfunding Nation” report estimated that – even without increased legislative support – crowdfunding will create 40,000 jobs in the US this year. That paper, alongside 151 JobsImpact reports, will be delivered to the Whitehouse this week – in a bid to elucidate the positive impact of crowdfunding upon the nation’s economy. 

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