The federal JOBS Act will make it easier for novice investors to use crowdfunding platforms to make actual equity investments in startups, rather than just donating money, as they can now through sites like Kickstarter. But with any crowdfunded project, there are some concerns to watch out for, according to David Tisch, managing director of TechStars NYC.
Speaking on a panel last Thursday at the Consumer Electronics Week (CE Week) conference in New York, Tisch said inexperienced investors may not be aware of just how risky a startup investment can be. “People are going to lose a lot of money betting on early stage Internet companies because 90 percent of Internet companies fail,” he said. “People are going to lose 90 cents on the dollar on a regular basis. That risk probably applies to Kickstarter on some projects.”
To read the full, original article click on this link: David Tisch and Others See Opportunities, Caveats with Kickstarter | Xconomy
