My crowdfunding concern – finance.fortune.cnn.com
“The revolution will not be crowdfunded. FORTUNE — Tuesday was Y Combinator Day, a bi-annual showcase for startups that have received the blessing of VC shepherd Paul Graham. And the buzzword this time around was crowdfunding….”
Brian Patrick Cork: This is well done. The next thing you need to know is that the SEC now has a crowd funding “watch List”, and rightfully so. Crowdfunding is a short-cut, and will become part of the problem, and less so a solution, except for bandits. – Cork
Paul Niederer :
Enjoyed the objectivity in this article.
Pledge crowdfunding relies upon instant gratification within a few months. Equity crowdfunding is built on hope. There will be no “initial user surge may be huge” in this space as pumping up hope for an individual raising will pander to misrepresentation and breach securities regulation.
Most equity raises will follow a relatively boring path with a few handfuls of investors who will mainly come from friends, fans, family and followers of the entity raising capital. Yes there will be exceptions but they will be few and far between and will usually be buoyed by external factors like well known investors investing and sudden credibility improvements like new team members, new deals and improved exit possibilities.
Let’s be part of the Solution.
peace be to my Brothers and Sisters.
brian patrick cork