Comments on: Is crowdfunding startups a solution, or just another problem?

By: Josh Hartung

Josh Hartung — Thu, 26 Jan 2012 03:08:09 +0000

Thanks for the post, Matthew. My question: how does this help mitigate the risk of starting a company? I feel like through de-regulation you make it easier for less sophisticated investors to part ways with their money. I’ve run two successful Kickstarters now and I know what it takes to deliver a product. I’m always surprised when I see people pledging for projects that clearly don’t have a chance of delivering on their promises.

I don’t think regulation is the answer, but education and assistance for both investors and startups is going to become increasingly difficult (read: fragmented) and incredibly important. These people can’t hire consultants… so what do we do?

By: Patrick Donohue

Patrick Donohue — Wed, 14 Dec 2011 05:52:41 +0000

“Is crowdfunding startups a solution, or just another problem?” @gigaom: http://t.co/LaPDMlRt via @gigaom

By: Patrick Donohue

Patrick Donohue — Wed, 14 Dec 2011 05:51:51 +0000

I am optimistic that positive changes are coming to the U.S. regulatory framework that will allow for broader advertising for investors (or “crowdfunding”). Change is coming; however, we need brightline rules. Whatever the outcome is of all of the discussions around making capital formation more efficient, we need it to be straightforward and simple for small business and investors to utilize capital formation tools. Unfortunately, most rules and regulations that deal with raising capital in the United States are ultimately dictated by case law and legal opinions. That’s where small businesses and individual investors lose big. The goal of reducing the friction in small securities transactions will never be obtained if we do not establish a fair set of rules for everyone to play by.

Patrick E. Donohue, CFA
founder
DealPen http://www.DealPen.com

By: Grow VC USA

Grow VC USA — Wed, 07 Dec 2011 00:22:55 +0000

RT @valto: Is crowdfunding startups a solution, or just another problem? @growvc_us http://t.co/Pay7MHeO

By: Crowdfunding

Crowdfunding — Mon, 07 Nov 2011 16:43:57 +0000

Matt,
Thanks for this post. This is fantastic news for entrepreneurs nationwide.Crowdfunding will be a great way for entrepreneurs to raise capital and launch their businesses.

By: vinicius.carneiro

vinicius.carneiro — Thu, 03 Nov 2011 02:07:46 +0000

In Brazil, we are living the same question, specially because we do not have an specific law neither about e-commerce… imagine about crowdfunding. We’ve made a post about legislative panorama in Brazil at http://nopaisdafiscalizacao.com.br/?p=611

By: Douglas Crets

Douglas Crets — Wed, 02 Nov 2011 16:06:40 +0000

It sounds great for the entrepreneurs, but if you limit the investment rate to $10,000 per year, aren’t you lowering the returns and the potential for scale across multiple investments?

By: Len Kendall

Len Kendall — Wed, 02 Nov 2011 13:21:58 +0000

That metaphor makes a ton of sense. And even looking at the stockmarket, there’s really no difference in what is being proposed above. Like I mentioned in my comment, we used Kicsktarter for our project and it ended up working great. Wasn’t a huge sum of money, but the model works and others could definitely replicate it.

By: Len Kendall

Len Kendall — Wed, 02 Nov 2011 13:20:20 +0000

The demand definitely exists for this, I think that if clear boundaries are set upfront than investors and companies can all walk away happy. No doubt, law-suits will happen, but I think that’s a small price to pay in the quest for developing really innovative products that set our country ahead once again.

By: Len Kendall

Len Kendall — Wed, 02 Nov 2011 13:18:35 +0000

For gis.to (gist-o) we used Kickstarter to raise a few initial funds. It also was quite effective in getting us visibility. http://kck.st/oK7MG2

The $2,500 isn’t going to make our world by any means, but it was the little spark we needed to get us on our way and get the attention of some bigger players. Some argue that Kickstarter’s rules don’t allow startups to use the platform, but I think if you position it the right way, then the system this article is talking about already exists.

-Len