A Crowdfunding Bubble?

When the man on the street starts to tout crowdfunding stocks is it time to flee the market?

A Syndicate Room (UK) study says that the 5 year compound annual growth rate (CAGR) for early stage companies has been 33% with a ~16% bust rate. Its polling indicated that almost twice as many investors are willing to take more risk in light of the current low standard market returns (the Wall Street Journal reports today that even the nuns are trading stocks) and that “average retail investor will be looking to allocate £20,000 next year for early-stage investment” (which seems rather high).

So, for prudent investors is it time to ask if there is a crowdfunding bubble?


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, balance, Banks, Broker dealers, Crowd Fund Act, Crowd Funding Platforms, Film, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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