Equity-Based Crowdfunding

What effect will the new rules have? It will be interesting to see. At the least, it should make it easier to raise funds for “unfashionable” projects (e.g., space and other hard-tech startups). One of the interesting aspects made possible by the Internet is crowdsourcing for the identification of iffy projects.

One thought on “Equity-Based Crowdfunding”

  1. I’m a big fan of public ‘micro’ investing. There’s a huge potential but with some very old problems that haven’t changed since time began.

    Then when you’re talking equities it adds the issue of an exchange which brings another set of problems with it. Equities aren’t worth much is you can’t sell them.

    If the problems could be mitigated (without a lot of govt. regs.) it could result in a huge economic boom and provide a new source for retirement planning.

    Most new businesses fail which makes it easy for scammers to hide among them. This is why collateral exists. Crowdfunding doesn’t seem to take collateral into consideration? Do they have some kind of internal rating system for those wanting money?

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