Crowdfunding describes the collective cooperation of people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations.
Here is Obama signing the act and explaining its purpose:
At the signing ceremony, he reiterated the importance of entrepreneurs´ contribution to the economic recovery. The Congress must have felt the same as it passed the JOBS Act with bipartisan support. Some critics worry the act will create a bubble by pumping money into poor investments – or, worse, outright scams – so Congress included safeguards for investors that crowdfunding sites must comply with.
In this video Dana Mauriello, Co-Founder and President of ProFounder, talks about what crowdfunding is and why the JOBS act that the President signed on April 5th, 2012 will make access to capital more readily available for small business.