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Once the JOBS Act regulations go through and companies can crowd-fund for equity, early rounds should go lightning fast. The problem is it will be difficult fo
by 6thSigma 13y ago
Once the JOBS Act regulations go through and companies can crowd-fund for equity, early rounds should go lightning fast.
The problem is it will be difficult for the crowd-funding websites to organize and adapt with regulations and the new marketplace that is being created.
For instance, if there are 1,500 investors in the Seed round, how do you decide who the official advisors are? Will people be wary investing in companies without a known advisor or investor already "in?" And if so, will that mean that crowd funding won't be necessarily all that helpful to companies struggling to find that first investor?