Why (Not) Crowdfunding? Challenges for Jane Investor

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recent contributed piece, “Why (Not) Crowdfunding? Challenges for Jane Investor,” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

I was on a panel last week talking about crowdfunding.  More particularly, crowdfunding in the context of the John and Jane Does of the world, which is to say middle class folks with modest financial resources.  “Unaccredited” investors, in the lingo of securities law, loosely defined as people who are not particularly wealthy.  Let’s call it “crowdfunding for the masses.”

Now first, let me say that philosophically I think crowdfunding for the masses is a fine idea.  As an old-fashioned Chicago School economic thinker and freedom of contract enthusiast, the idea that the government should prohibit consenting adults from entering into otherwise lawful business contracts of their own choosing just because one party doesn’t meet some government imposed wealth test strikes me as unfair.”

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