Please see article/audio from NPR.ORG
http://www.npr.org/blogs/alltechconsidered/2012/03/29/149620312/new-law-raises-funding-hopes-for-startups-worries-over-fraud
The Jobs Act would clear the way for new companies to advertise that they're looking for investors, and it would let anyone invest in privately held businesses, making it a lot easier for startups like Space Monkey to raise money and for new sites like AngelList to get off the ground.
The new law also opens the door to online crowd-funding sites where startups can strut their stuff and jockey for small investors' attention. Dozens of entrepreneurs, like Sara Hanks, see a big opportunity in that. But as a securities lawyer, Hanks is also skeptical.
"I think we can expect to see the African princes inventing cold fusion any second now," she says. "Wherever there's money, there's going to be fraud. I think we have to stipulate that up front."
Hanks is the former general counsel for the congressional oversight panel charged with keeping an eye on the federal banking bailout, so she knows a thing or two about financial shenanigans.
But that's not stopping her from launching her own online crowd-funding portal. Unlike most of her potential future competitors, her plan is to hire securities lawyers to sift through the startups that want to raise money on her site and weed out the crooks. Still, none of those companies will be a sure thing.
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