Will The Walking Dead Crowd Fund?

Will “zombie startups” try to access capital through crowdfunding? The Wall Street Journal defines these companies as consumer and e-commerce businesses that have just enough capital to keep the doors open for awhile, but they aren’t growing fast enough to raise more financing from their VCs or to secure a big “exit” through a sale or by going public. If they are pariahs to the “smart money,” the logical place to go seems to be the not-so-sophisticated small investor market. Should their disclosure discuss the fact that their capital requests were rejected by their founding stockholders?

http://online.wsj.com/article/SB10001424127887324323904578368313767542352.html?mod=rss_Technology

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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