No doubt, crowdfunding has great promise, as noted recently in Entrepreneur. But currently without final SEC rules being put in place, the promise remains veiled. Certainly the ability to raise money via donations or rewards is beginning to blossom, but that limits the kinds of startups that can genuinely use these new funding methods, promised by the JOBS act, in any kind of substantive way.
Having recently mentored a crowdfunding platform it’s apparent that many gray areas still exist between the role of a broker dealer and these new models. It has made landing on a successful business model for these promising platforms a real challenge. Hopefully the veil on the opportunity will come off later this year. The potential will remain nascent until that happens.
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