This weekend, Miami-based EarlyShares.com, the equity-based online crowdfunding platform, opened its Small Business Challenge (www.smbchallenge.com), offering as prizes $50,000 to help small businesses grow and hire new employees. According to EarlyShares, the voting competition, which kicked off Saturday and runs through early November, will reward companies that show the most potential for job creation. While crowdfunding won’t be regulated until early 2013, EarlyShares.com said it sees immediate need to provide access to funds that will help small businesses contribute to the economic recovery now.
The contest, which launched Sept. 1, will give the crowd an opportunity to decide which businesses deserve to be funded. Each company that applies is required to make a pitch for how the Small
Business Challenge will help their business create more jobs. The top three that demonstrate the most potential for growth and job creation -- as determined by a panel of judges and then by public voting -- will be announced on Nov. 9.
Businesses with less than 100 employees, as well as entrepreneurs with startup ideas, are eligible to
participate. The winner will receive $25,000 in cash and advertising support, while the second- and third-place winners will be awarded $15,000 and $10,000, respectively, the company said. To qualify, businesses must submit an application at SMBchallenge.com and receive at least 100 votes from their supporters through social media and email campaigns. The submission, nomination and voting process runs from Sept. 1 to Oct. 31.
After the initial voting period ends, the 25 companies with the most votes will be named automatic
semifinalists. A judging panel will select another 25 semifinalists that demonstrate the most job-creating potential. The panel will then gather additional information about the semifinalists and their leadership teams and select 10 finalists. The three prize winners will be chosen by voters between Nov. 2 and 7.