A revolution in early-stage finance is changing the way inner-city African-American communities relate to capital formation, real estate development, entrepreneurship, and job creation. Thanks to the passage of the JOBS Act of 2012, a new market is being created that will revolutionize how early-stage investing and community economic development works — It’s called Crowdfunding!

Bill Huston

To this end, I personally believe that equity crowdfunding is the most significant piece of financial-based legislation for African Americans since the Emancipation Proclamation 1863 emancipation of Southern slaves.

Rodney Sampson

“If African-Americans shifted just 1% of the $1.3 trillion they have in purchasing power to small Black-owned businesses, it would amount to $10 billion invested in Black Communities.  

That’s not a game-changer. That’s a revolution!

Shifting Dollars  from Consumerism

May 16th, 2016 the  SEC Rulings on crowdfunding intermediaries went into effect and today ordinary Americans are able to collaborate en masse to give small individual amounts of funding to startups, small businesses, and real estate developments online through crowd investing, and become shareholders in the process. 

The Power of Crowdfunding

When people understand the power of local investing and crowdfunding and begin to pull from their bank savings, mutual fund accounts and begin investing 1 percent of their disposable income in order to put their money to work in their own communities. Crowdfunding will have the power to change how African-Americans from all income levels make decisions about where to put their money and how to spend that money.

From Consumer to Investor 

Crowdfunding will usher in a radical transformation forever redefining what it means to African-Americans to be a crowd investor in America by bringing local crowdfunding into the homes of inner-city community members in the Internet Age. If African-Americans embrace the power of crowdfunding then the most socially transformative part of crowdfunding will come from the power of local or community-based investing.

The Case for Local Businesses

There are overwhelming amounts of recent research from prominent economists, sociologists, and other researchers that find that small, local businesses are critical to overcoming many of our biggest challenges, from reducing economic inequality to building resilient communities. According to the Kauffman Foundation, new businesses account for nearly all net new job creation and almost 20 percent of gross job creation.  


According to Local Investing fostering an economy of small-scale businesses may be one of the most effective ways to close the gap between rich and poor. Civic leaders are increasingly grappling with income inequality, and creating policies to foster an economy that’s based on local ownership and community-scaled businesses may be one of the most effective ways to do it. That’s the implication of new research that identifies links between corporate consolidation and the widening gap between the rich and poor. If you want to learn more about real estate crowdfunding please visit Rev Up Detroit.