This is news?
The Wall Street Journal reports today that crowdfunding is ” …as close to gambling as you can get.”
In a story in its Retirement section, the Journal finds that, OMG, investing in crowdfunded companies is risky and just the idea suggests that the company is not worthy of investment, quoting a professor that it’s “a major red flag is that the company is looking to crowdfund for equity in the first place.”
However, the investing public seems to like the idea as “$16.2 billion was raised through the various types of crowdfunding in 2014, up 167% from the year before.”
The author of this story appears to be a financial Rip Van Winkle.