Crowdfunding: ‘Lord of the Flies’ for startup investors

During the crazy startup bubble times of the late-1990s, money was flowing into venture capital funds faster and at higher volumes than water flowing into Hurricane Sandy-ravaged subway stations in lower Manhattan.

Professional venture capitalists rushed to invest billions of dollars taking substantial positions in companies they hoped would be the next Yahoo or Netscape.

Taking major positions afforded these professional venture capitalists supervisory board roles. Yet even under the watchful eye of experienced startup investors, investors who were highly motivated by the prestige and generous financial rewards derived from successful early-stage investments in great growth companies, there was rampant abuse.

Read More at Washington Business Journal



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