Blurring the Lines On Crowdfunding

What is rewards-based crowdfunding but a pre-sales mechanism?

The infomercial company, As Seen On TV, has created a new crowdfunding platform (using a white label website created by Launcht) to crowdfund (or pre-sell) consumer products that fit a “certain price level,”  “solve a big problem” and provide a benefit to consumers that is “demonstrable in a video.”

ASOTV will “manually curate” its crowdfunding site, and will prefer products that have started to “move into the market,” with brand naming, market research and trademarks already attained.

Is this crowdfunding or just an extension of direct-to-consumer marketing from television?

http://blogs.wsj.com/venturecapital/2013/06/24/infomercial-maker-seeks-next-snuggie-using-crowdfunding-site/?mod=WSJBlog

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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 Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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