A new law allowing private companies to sell shares to the public over the Internet is a disaster in the making, a market research analyst for Boston's OpenView Venture Partners argues.
Nick Petri of the firm that has invested in ExactTarget and Mashery likes crowdfunding—in theory. But, in a couple of blog posts over the past week, he lays out causes for concern as the Securities and Exchange Commission develops rules to allow private companies to sell shares to anyone.
Here are a couple of his points:
The model leaves startups vulnerable to lawsuits from disgruntled investors. Petri writes:
To read the full, original article click on this link: Beware of crowdfunding's downside
