Most likely when stock-based crowd funding starts, similar delays and disappointments will be common. And even when stock-based crowd funding is allowed to proceed, it’s pretty unlikely to be any friendlier than the stock market. Keep in mind 10% of young initial public offerings never make it to see their third birthday, according to data from Jay Ritter of the University of Florida. And those are even more established companies that had the financial backing to qualify and afford an IPO. Crowd-funded companies are likely to be much younger, immature, and therefore, riskier.
Tags: crowdfunding, crowdsourcing, matt-krantz, stock-crowdfunding, stock-market
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