A large number of naive investors as partners increases the risk of an investment.
It's the reason that professional investors tend to put together deals with other investors they have previously worked with. It's the reason they form groups.
As I've said, crowdsourcing will attract dumb money. Smart money will tend to prefer not to become legally entangled with it. People with lower inhibitions will enjoy a feeding frenzy.
Don't misunderstand me. There will be widely trumpeted crowd source success stories.
It just won't change the fact that most people will lose their investments - heck that's even the rule for smart money investing in startups.
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>"Crowd funding is a way to lower your risk."
A large number of naive investors as partners increases the risk of an investment.
It's the reason that professional investors tend to put together deals with other investors they have previously worked with. It's the reason they form groups.
As I've said, crowdsourcing will attract dumb money. Smart money will tend to prefer not to become legally entangled with it. People with lower inhibitions will enjoy a feeding frenzy.
Don't misunderstand me. There will be widely trumpeted crowd source success stories.
It just won't change the fact that most people will lose their investments - heck that's even the rule for smart money investing in startups.