http://www.indiegogo.com/Change-Crowdfunding-Law
Here's the intro in case you don't want to click yet:
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ABOUT
Crowdfunding sites like IndieGoGo offer VIP Perks but
not shares- because offering profit participation is
illegal. Securities law lets you gamble your retirement
on investments conveyed through the all-controlling
financial system, but you can't invest $50 in someone you
actually know personally, in order to help them start a
small business, write a book, make a film, build an iPhone
app or develop a new product that you believe has commercial
potential.
The SEC can change this situation by introducing a regulatory
exemption that caps individual investments at $100. I believe
that doing this would change everything for crowdfunding, spark
innovation, and help vitalize the economy from the bottom up.
The idea of an exemption based on very low cap on individual
investment is not new; according to the SEC's Anthony Barone,
it has been discussed and brought to the SEC's attention by
academic economists. What has not yet been demonstrated is the
extent of public interest in such an exemption.
This project offers a serious plan for essentially forcing the
SEC to consider this possibility and respond to it publicly.
This issue is more complicated than can be explained on this
short project page, but you can read the prospectus for the
history and background on this project.
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/jordan