Why Steve Rattner is Wrong on Crowdfunding
Steve Rattner, former Obama “Car Czar” and prominent financier, recently wrote an article in the New York Times denouncing
the JOBS Act as, “a hodgepodge of provisions that together constitute
the greatest loosening of securities regulation in modern history,”
saving his most scathing criticism for the legalization of equity based crowdfunding.
Mr. Rattner raises many valid concerns, some that I share. But, his
conclusions are wrong. Crowdfunding can benefit independent investors,
small businesses, and the country overall by using the power of the
internet to allow for an open, transparent capital raise.
Mr. Rattner argues that investing in private businesses should be
left up to the professionals. In his words, “Picking winners among the
many young companies seeking money is a tough business, even for the
most sophisticated investors. Indeed, most professionally run venture
funds lose money. For individuals, it’s pure folly.” Read more on Forbes.
