Fact: Thanks to the new crowdfunding legislation, it soon will be easier for any entrepreneur trying to build Instagram for Cats to raise $10 million than it is for an experienced venture capitalist to raise a new fund. In fact, thanks to increased scrutiny of investment funds in a post-Madoff world, this imbalance will probably get bigger and bigger. The laws are written with the view that it's worse to lose your money from fraud than it is from your run-of-the-mill, poorly-executed bad idea. You know, because sometimes startups just simply don't make it (shrug) but you gotta watch out for those financial hucksters who are looking to take your money and run off to kick it in Fiji.
To read the full, original article click on this link: The screwy logic of crowdfunding - Term Sheet
