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7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

Startups are not required to have a formal Board of Directors, and can’t afford to implement many of the financial and operational controls required of public companies. Investors from the crowd have no opportunity to look at financial, operational, or management details before making a final investment decision.

Equity 180
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On the Road to Recap:

abovethecrowd.com

The reason these terms can produce returns by themselves is that they set the stage for a rejiggering of the capitalization table at some point in the future. One response from the LP community might be to demand commitments from new funds that prohibit inside-led rounds and cross-fund investing. This is uncharted territory.

IPO 40