Mayor Edwin M. Lee today issued the following statement urging Congressional support for reforms to the regulatory process required for startups to raise capital through crowdfunding, a fundraising method which pools small amounts of money from many investors:
“Crowdfunding will fundamentally alter how entrepreneurs access capital, democratizing investment in our new economy to many more people. Access to capital is the engine for our startups and letting more people participate in helping growing businesses will be a boon for small investors and businesses alike.
Innovation is fueling San Francisco’s economic recovery and with crowdfunding, many more small businesses can start, grow and stay here in San Francisco.”
Mayor Lee is the first large city Mayor to support crowdfunding, an important mechanism in the incubation and development phases of many new economy start-ups. Mayor Lee supports the inclusion of provisions in recently-passed U.S. Senate version of the JOBS Act, which grant the U.S. Securities and Exchange Commission greater oversight of crowdfunding to help reduce investor fraud. With the legislation back to the U.S. House for approval, the Mayor urges members of the House to include anti-fraud provisions and send the bill to President Obama to sign.
In addition to supporting crowdfunding, Mayor Lee has demonstrated his support of the growing innovation economy through his recent opposition to SOPA/PIPA, support for the “sharing economy” through the nation’s first Sharing Economy Policy Working Group with members of the Board of Supervisors and passing the Central Market / Tenderloin Payroll Expense Tax Exclusion in 2011 to help revitalize Central Market. Mayor Lee recognizes that smart policies can help San Francisco’s innovation economy grow will drive our economic recovery and create good jobs for San Francisco residents.