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.
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.
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.