Is Crowdfunding A Gut Investment Or Is A Ratings Firm Needed?

The equity crowdfunding field is getting crowded with companies that have product ideas, prototypes or even actual businesses.

Everyday, non-accredited investors can now wager on the future of these businesses, but the disclosure about them remains rather nominal.

So, in order to parse the good from the bad, a new industry is rising, a crowdfunding rating firm, Stratifund. The firm touts itself as an “independent, unbiased, centralized source of information about equity crowdfunding deals.”

In other words, the Morningstar for crowfunding investors at only $10 bucks a month. With the amount of investment limited by law, is there a $120/year need for this service ?

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:
This entry was posted in accredited investor, Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, unfair and deceptive practice, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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