The crowdfunding bubble of 2013 part 3 — how to make it successful

This is the third and final part of my series on crowdfunding. In part one we learned how important crowd funding can be for helping tech startups and the economy. In part two we worried about how criminals and con men might game the eventual crowdfunding system when it starts in earnest next January. And in this final part I suggest a strategy for crowdfunding success that essentially comes down to carpe diem – seize the day!

Crowdfunding done right will have a huge positive impact on any economy it touches. But by done right I mean done in a manner that maximizes impact and minimizes both corruption and unnecessary complexity. This […]

The crowdfunding bubble of 2013 part 2 — crooks and con men

Legal crowdfunding is coming, as I explained in the first part of this series. Thanks to the Jumpstart Our Business Startups (JOBS) Act, investors big and small will soon have new ways to buy shares in startups and other small companies. This should be very good for growing companies and for the economy overall, but there’s peril for individual investors from scammers likely to be operating in the early days of this new law.

Most concerns hearken back to the Banking Act of 1933, enacted to bring order and regulation to the banking industry during the Great Depression.  It was the collapse of the banking industry, not the stock market crash, that did most of the damage […]

The crowdfunding bubble of 2013

When President Obama signed the Jumpstart Our Business Startups (JOBS) Act on April 5th, the era of crowdfunding began as individual investors everywhere were promised an opportunity to gain access to venture investments previously limited to institutions, funds, and so-called qualified investors. Come January 1, 2013, we’re told, anyone can be a venture capitalist, but hardly any of these new VCs will know what they are doing. Spurred by the new law we will shortly see a surge of crowdfunding startups giving for the first time unqualified investors access to venture capital markets. And it will be a quagmire.

Like disk drive startups in the 1980s each of these new crowdfunds will […]