--- title: "New Crowdfunding Law: Investor Interest Grows, Research Shows" id: "14288" type: "post" slug: "new-crowdfunding-law-investor-interest-grows-research-shows" published_at: "2012-11-06T17:45:14+00:00" modified_at: "2026-03-15T19:06:53+00:00" url: "https://associationsnow.com/2012/11/06/new-crowdfunding-law-investor-interest-grows-research-shows/" markdown_url: "https://associationsnow.com/2012/11/06/new-crowdfunding-law-investor-interest-grows-research-shows.md" excerpt: "With a new crowdfunding law about to take effect, new data from the Crowdfunding Professional Association shows the industry’s burgeoning popularity." taxonomy_category: - "Fundraising" taxonomy_post_tag: - "AssociationsNow" - "Business" - "crowdfunding" - "Fundraising" - "investment" taxonomy_content_format: - "Article" taxonomy_role: - "C-Level" - "For-Profit CEO / President / Owner / Partner" taxonomy_persona: - "Industry Professionals" --- [Home](https://associationsnow.com/) » [Articles](https://associationsnow.com/format/article/) » New Crowdfunding Law: Investor Interest Grows, Research Shows There’s good news for small businesses and startups waiting for the legalization of equity-based crowdfunding: [New research (opens in a new tab)](http://crowdfundingprofessional.org/about-3/news/) from the Crowdfunding Professional Association (CfPA) shows a growing interest in this type of investment. The study, which surveyed 442 entrepreneurs, investors, and intermediaries about their interest in crowdfunding, found that 68 percent of respondents were already very familiar with the concept, and a majority reported that they have a high level of understanding about the differences between what is allowed under current regulations and [what the JOBS (Jumpstart Our Business Startups) Act will permit](http://associationsnow.com/2012/10/associations-grapple-with-startup-funding-law/) when it takes effect in 2013. Current crowdfunding models reward donors with gifts, free samples, or other nonmonetary benefits. Under the JOBS Act, equity-based or debt-based crowdfunding platforms will be allowed. The first will reward backers with an equity stake in a business and a share of its profits, while the latter will return the original investment plus interest. Ryan Feit, CEO of an equity-based platform and a leader in CfPA, acknowledged [in a statement (opens in a new tab)](http://crowdfundingprofessional.org/about-3/news/) the increased interest in crowdfunding but said the public needs to be educated about the finer points of the budding industry. “The general awareness of investment crowdfunding has increased substantially since April,” Feit said, “but there is still a meaningful opportunity to help entrepreneurs and investors better understand both the nuances of the JOBS Act and early-stage investing in general. Both of these objectives are critical in order to ensure that the investment crowdfunding industry takes off with the massive potential it possesses.” Crowdfunding is likely to make the biggest impact in the technology sector, the study found. Of the survey’s respondents who classified themselves as entrepreneurs, 30 percent were in technology. Media and entertainment, finance, and consumer goods were the second, third, and fourth most represented industries among entrepreneurs (about 10 percent each). On an altruistic note, while 33 percent of respondents said the biggest driver of investment is the potential for returns, 20 percent stated their biggest driver is helping organizations get capital they previously could not. Another 20 percent reported they want to be a part of something bigger than themselves, and 17 percent said they want to make a difference in the life of an entrepreneur. The CfPA study was conducted with Crowdfund Capital Advisors. (Sxc.hu photo) [Katie Bascuas](https://associationsnow.com/author/katie-bascuas/) Katie Bascuas is a former associate editor at Associations Now in Washington, DC. [More articles by this author](https://associationsnow.com/author/katie-bascuas/) Tags: [#Business](https://associationsnow.com/tag/business/) [#crowdfunding](https://associationsnow.com/tag/crowdfunding/) [#Fundraising](https://associationsnow.com/tag/fundraising/) [#investment](https://associationsnow.com/tag/investment/) **Stay Informed** [Subscribe to our free newsletter](https://associationsnow.com/newsletter/) , *Associations Now Daily News*, to find out what’s happening in the association world every business day. ## You Might Like - [Video2025 Summit Award Recipient: Florida Association of Free and Charitable ClinicsOctober 3, 2025](https://associationsnow.com/2025/10/03/2025-summit-award-recipient-florida-association-of-free-and-charitable-clinics/) - [Video2025 Summit Award Recipient: Building Owners and Managers Association of Greater Los AngelesOctober 3, 2025](https://associationsnow.com/2025/10/03/2025-summit-award-recipient-building-owners-and-managers-association-of-greater-los-angeles/) - [VideoWhy We Donate to ASAE Research FoundationNovember 30, 2023](https://associationsnow.com/2023/11/30/why-we-donate-to-asae-research-foundation/) - [VideoA Donor First Look, “Unlocking Legacy: Estate Planning Essentials for Association ProfessionalsJanuary 7, 2025](https://associationsnow.com/2025/01/07/a-donor-first-look-unlocking-legacy-estate-planning-essentials-for-association-professionals/) ## Comments **Comments are for ASAE members.** [Learn more about comments on this site.](https://associationsnow.com/comments/) [Log in](https://associationsnow.com/login?redirect_to=https%3A%2F%2Fassociationsnow.com%2F2012%2F11%2F06%2Fnew-crowdfunding-law-investor-interest-grows-research-shows%2F%23comments) to your member account or [join ASAE](https://my.asaecenter.org/select-a-membership-type/) !