Crowdfunding: there may be trouble ahead

Crowdfunding has been hailed by the start-up community as an exciting new way to raise capital, allowing entrepreneurs to crowdsource investment from friends, family and third-party investors. But some industry professionals are warning that crowdfunding is a legal disaster waiting to happen.

During the dot-com bubble of the late-90s, hard-nosed investors piled in money thinking that if one in a hundred companies struck gold, they would have been succesful. Less street wise people were encouraged to invest in companies which often lacked basic financial and even legal underpinnings, and many lost their shirt.

Read more at TechWorld

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