When Crowdfunding Goes Wrong

Law360, New York (October 15, 2015, 1:50 PM EDT) -- Thomas A. Woods

Connor W. Olson Crowdfunding has long been a resort for those with bright ideas and little capital to bring an inspired cause to market. However, the introduction of the Internet and smart technology has generated a boom in the practice, as innovators and startups increasingly look online to generate crowdfunded financing. Perhaps, unsurprisingly, we're now starting to see some of the downsides of turning to crowdfunding to bring ideas and products to market.

With the advent of low-to-no-cost viral marketing, and websites such as Indiegogo and Kickstarter[1], inventors, entrepreneurs and lay people alike are able to generate substantial...

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