Mittwoch, 27. März 2013


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.