Entrepreneurial Risk Of Crowdfunding

One of the dangers of crowdfunding is the public release of your idea before you go to market.

Since most crowdfunders are in the startup mode and likely have not patented their product (although a patent may not help in this situation), they are risking that someone with money will take the idea and execute it before they are able to do so.

That’s happening now as the Chinese are taking Kickstarter ideas, producing a product and selling it on Alibaba.

Entrepreneurs beware!
http://www.odditycentral.com/news/chinese-companies-are-stealing-kickstarter-product-ideas-and-launching-them-faster-and-cheaper.html

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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 accredited investor, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, SEC, Small Business, technology, Uncategorized, unfair and deceptive practice, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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