Senate crowdfunding tweaks will cause US brain-drain [23Mar12] - 0 views
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In over four years of operation, leading crowdfunding site Indiegogo reports virtually no fraud. U.K. crowdfunding leader Crowdcube (which does allow equity finance) reports no fraud. As is the case for U.S. based peer-to-peer lending site Prosper or AngelList, the popular site for angel investors searching for deal flow from entrepreneurs. Never let the facts get in the way of a good FUD story. If you commit fraud online, your life is over.
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Fraud feeds on opacity and on small groups, because those factors increase the probably of not being "found out". Ironically, that would well describe the environment of the traditional investment paradigm. But in the social networking sphere, the more viral any story gets, the more the chances that fraud will be exposed by the people who would know.
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If we make it hard for Americans to invest in crowdfunding, then entrepreneurs will tend to get funded with larger percentages of foreign money.