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Securities

Aug. 17, 2012

Crowdfunding: making sure it works

It is vitally important that the outcome of the JOBS Act not be the creation of a market that is so lax that fraudsters and charlatans enter, and in the process discredit crowdfunding. By Martin Kenney of UC Davis


Crowdfunding uses dedicated Internet websites where promoters describe their projects to potential funders. These websites allow the promoters to reach a far larger audience and number of potentially interested parties than would otherwise be possible. Think of it as a way to pitch a project to the world and aggregate demand in ways previously unimaginable. For me, this is one of the most exciting ways of raising money for good projects that has ever emerged. The excitemen...

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