In theory, crowdfunding appears to be a great way for people with good ideas to take advantage of the Internet. Throw your idea online and a slew of like-minded investors will give you money to bring your idea to fruition. Artists have been doing it successfully for a few years on Kickstarter to fund creative projects, and teachers on Funding4Learning to fund education projects. To bolster this burgeoning concept, in April 2012, the United States Government passed the Jumpstart Our Business Startups (JOBS) Act, which contains crowdfunding provisions to help these entrepreneurs raise funds. Taking a closer look at crowdfunding reveals a system fraught with peril that will likely lead to an increase in litigation.
To read the full, original article click on this link: Crowdfunding: Potential Legal Disaster Waiting To Happen - Forbes
