"giving the lay person a chance to be a part of the next facebook is a great story"
Not necessarily lay person. For example maybe a world-class database technology expert in Russia wants to invest some thousand dollars into a database technology startup. Maybe he has more understanding about the technology/market than so-called 'experts' (Sillicon Valley investors).
That begs a couple of interesting questions regarding how crowdfunding LPs will be able to add value to their investments, and what companies will be inclined to disclose.
At the onset of crowdfunding, less sophisticated transaction arrangements are likely to not prioritize those two scenarios. But it makes sense when we think of crowdfunding at its maturity.
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"giving the lay person a chance to be a part of the next facebook is a great story"
Not necessarily lay person. For example maybe a world-class database technology expert in Russia wants to invest some thousand dollars into a database technology startup. Maybe he has more understanding about the technology/market than so-called 'experts' (Sillicon Valley investors).
That begs a couple of interesting questions regarding how crowdfunding LPs will be able to add value to their investments, and what companies will be inclined to disclose.
At the onset of crowdfunding, less sophisticated transaction arrangements are likely to not prioritize those two scenarios. But it makes sense when we think of crowdfunding at its maturity.