While
crowdfunding has received considerable positive fanfare since the JOBS Act was
passed in April 2012, there has also been considerable criticism leveled
against the industry covering both the companies trying to crowdfund and the
investors funding them. Below are the three concerns that I hear most often as
CEO of CircleUp, and what we do as
a platform to mitigate these concerns.
Concern 1: Companies that use crowdfunding are weak
Concern 2: Confidentiality
Concern 3: The investors will not add value
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