So… How is Kickstarter, or “crowdfunding” not illegal?
Consider this point-of-reference article, The Kings of Crowdfunding.
NOTE: Another aspect of crowd funding is tied into the JOBS Act which allows for a wider pool of smaller investors with fewer restrictions. The Act was signed into law by President Obama (naturally) on April 5, 2012.
The SEC is going to have approximately 270 days from the enactment date to set forth specific rules and methods to ensure that funding will actually take place. So, technically it’s probably not illegal due to that evaluation period. But, investors are going to get hurt. And, eventually, the programs will need to be radically altered. As the saying goes… If it’s too good to be true… And, it’s right up the, collective, alley of self-entitled entrepreneurs that think it’s okay to cut regulatory corners along with the offering of white lies to get what they believe is due them.
It’s crazy to me. This flies in the face of every effort by the SEC and state regulators to protect against pillaging small investors?
Let’s be part of the Solution.
brian patrick cork