Crowdfunding is all the rage today. By mid-2012, more than 50,000 projects had been listed on Kickstarter alone, of which something like half had reached their (typically very modest) fundraising goals. By early 2013, Kickstarter passed the $1 billion milestone in amounts pledged. And these numbers are growing fast. Crowdfunding takes many forms, of course, but the form I worry about is equity-based crowdfunding that is intended to start an ongoing entrepreneurial business.
