What’s Wrong with Crowdfunding?
The JOBS Act was designed to help online capital formation. So far, the results have been disappointing.
| CFO Magazine
Raising $5 million, $10 million, even $50 million online seems irresistibly easy. An attractive video and PowerPoint, a credit card number, a few mouse clicks, and the transaction is done. Joe Six-Pack gets in on the ground floor of a business just like a venture capitalist would, before the real returns are made. And the early stage company funds its brilliant idea for very little money. In some ways the Jumpstart Our Business Startups (JOBS) Act may have been a precursor of the new economic populism, giving privately held, small and midsize companies the opportunity to raise capital from ordinary people instead of Wall Street’s coastal elites. Read More . . .
