Two groups representing angel and VC investors welcome a new way to tap into startup capital. But careful consideration must prevail to keep investors and startups safe, they say.
Some commentators have expressed concerns that crowdfunding will attract investors who are less experienced, have a smaller financial cushion to fall back on. Due to those concerns, investor safeguards like accreditation thresholds like the ones described above should be included in any crowdfunding laws, said Genevieve Morin, co-president of Reseau Capital, Quebec's VC industry association.
“We might be getting money perhaps from people that are earning quite a bit less than even angel investors,” Morin said. “The amount they're allowed to put into a single company or all together should be kept to a maximum.”
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space,
Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
practice expertise and unbiased thought leadership.