10 May 2011

Crowdfunding

Growth Matters | Clement Wen | An Introduction to Crowdfunding

It's an amazing time to be alive. From the Boston Herald on crowdfunding (via Instapundit):
In fact, it’s what you do — or plan to do — that can make or break success in the world of “crowdfunding,” which allows anyone to raise money with online video and blog pitches. Through sites like Kickstarter.com and Indiegogo.com, the top crowdfunding conduits in the U.S., donors big and small can contribute to projects that catch their eye.

“At a time when it’s very challenging to get money, it democratizes the process,” said Tory Johnson, 40, a small-business expert and founder of Spark & Hustle. “People you don’t even know will give you money.”
Crowdfunding is pretty cool, but here's what I think is weird about it.

I can watch some guy's pitch for a new FOO and decide to give him $1000 to help him along. Just give the money away. But I am legally prohibited from giving him $1000 in exchange for a stake in FOO because I'm not sophisticated rich enough for Uncle Sam to feel comfortable letting me make decisions like that with my money. Weird, right?

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