The links in today’s roundup are kind of gloomy, but they do include some interesting and arguably valid concerns about crowdfunding moving forward. Do you think any or all of these concerns are valid? Let us know in the comments.
PostCrescent.com | Crowdfunding trend gets green light in Wisconsin, but there are still caution flags
This article by Tom Still, President of the Wisconsin Technology Council, outlines the inner workings of Wisconsin’s proposed intrastate crowdfunding exemption. The question posed at the end is interesting: “If the best deals are attracting experienced money from venture capitalists or angel groups, does that mean crowdfunding investors are left to pick from a less desirable pool?”
Expanding on the question posed in the first article in today’s roundup, VC and former Chairman/CEO of AOL Barry Schuler wonders if crowdfunding is doomed to fail. “A private company had raised a significant round of funding from non-accredited investors—grandmas, neighbors and private individuals. When the company faltered and it was necessary to pivot, guess the biggest hurdle?”
According to a recent Fundweb poll, over 49% of respondents said that crowdfunded securities aren’t appropriate for retail investors due to the high levels of risk involved. 22.5% of respondents said that they were “waiting for the space to mature before they decide if crowdfunding is suitable for retail investors.”