All-star backed start-up Profounder announced on February 17th that they would be closing their doors at the end of March.
Despite our progress, the current regulatory environment prevents us from pursuing the innovations we feel would be most valuable to our customers, and we’ve made the decision to shut down the company (Profounder Blog)
The start-up, headed by Kiva.org founder Jessica Jackley and fellow Stanford grad Dana Mauriello, had a very impressive advisory and investment team. Judging from list of investors, money should not have been an issue for keeping the site running. That leads me to believe that the Profounder team confirmed something I have suspected for the past month or so. The Crowdfunding equity bill will not be passed this year.
According to The Hill’s Floor Action Blog, Sen. Rand Paul’s (R-Ky.) continued filibuster is blocking the Senate from debating any new legislation. The debate is regarding an amendment to strip the ruling regime in Egypt of its U.S. Aid for a month. Furthermore, many suspect that the bill in the Senate is too far away from HR2930 that passed in the House in early November.
Soon, if they haven’t already, politicians in Washington will move into election preparation. When that happens, you can kiss any hopes of new legislation goodbye. Just another reason to be angry at the “game” the politicians are playing in Washington.
Unfortunately, it looks like the Profounder team was just a little before their time. It takes a great team, financial support, and a little bit of luck to get a start-up off the ground. Jackley and Mauriello mentioned in their blog post that they will be joining the GOOD team to help develop “the next chapter of crowdfunding.”
I’m sure they will be heard from again. If you want more information on the movement to make capital accessible for entrepreneurs visit legalizecrowdfunding.org