Summary
Alarms have already been raised about potential risks to retail investors posed by the wildly popular new process to raise capital.However, most entrepreneurs are unaware of the fact that the real danger in crowdfunding is that it might prevent start-ups from ever being able to raise private funds from any other source.

Description
The real problem, however, is that crowdfunding entrepreneurs may be stuck with this unwanted baggage permanently. Crowdfunding creates a capital structure that tends to scare off other sources of start-up cash, like venture capital and angel investors. These big-ticket investors have little interest in competing with mom-and-pop investors for profits in new companies and in corralling their agreements to key corporate actions. Also , given the expense and danger associated with crowdfunding, companies that were forced to resort to it are likely to be limited to those that were too risky or badly managed to attract larger early investors.