When a company goes public — when selling shares to the public through an Initial Public Offering (IPO) — it is usually five to ten years old. This means that considerable gains have already gone to the early investors, such as angels and VCs (venture capitalists). Kind of unfair, huh? Well, to deal with this, Congress passed the Jobs Act in 2012 to democratize investments in startups. The result has been the emergence of a variety of equity crowdfunding sites.
Alexander M. Murray, Assistant Professor of Management at the University of Oregon’s Lundquist College of Business, recently spoke to InvestorPlace about such equity crowdinvesting sites:
