Is crowdfunding enabling ignorant “Joe Six Pack” investors or empowering industry outsiders? It depends on who you ask.
In Nov. 2013, Gov. Walker signed a law allowing Wisconsin businesses to raise money from Wisconsin residents through internet crowdfunding sites.
Industry insiders sparred over the merit of the Wisconsin law, which came into effect in June 2014, and subsequent investments during a Wisconsin Innovation Network event on Tuesday.
Some contended crowdfunding is an asset to fledgling companies looking far and wide for money. Others said crowdfunding spoils young companies’ prospects for hooking high-powered, big money investors.
“As an entrepreneur, the last thing I want is a dumb investor,” said Paul Jones, attorney and member of Angels on the Water, a venture capital firm that operates primarily in the Fox Valley. “High impact businesses that take a lot of risk capital to create tend to want investors who know what they’re doing and are reasonably sophisticated.”
Read the full Capital Times article here.