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ProfessorVC: Crowdfunding - Good Idea or Really, Really Stupid.

Professor VC

While I agree there are many potential benefits of having additional sources for start-up and small business funding, I'm still not convinced that these crowdfunding bills will do the trick. My skeptical side assumes that the intermediaries are the only ones that will make money in aggregate on these deals. Daniel Sisson.

SEC 54
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Crowdfunding Bill Stuck in the Senate

Scott Edward Walker

Precisely because of this profile, however, such offerings are uniquely subject to fraud, and some issuers will simply be phantom companies without any assets, business model, or real world existence.”

SEC 91
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Is crowdfunding legal?

Startup Company Lawyer

First, crowdfunding involving the sale of securities triggers the prohibitively expensive registration requirements of the Securities Act of 1933, as generally no exemptions are available in many crowdfunding models. Some companies utilize pure donation models. Requirements on Intermediaries.

SEC 58