What if you could have bought shares in Facebook when it was just a startup? Despite the iffy performance of the company’s first day of trading Friday, an early investment could have made you millions. Of course, to have that opportunity you would need to have been connected to Mark Zuckerberg’s inner circle at the time. With new laws in the United States related to crowdfunding, the inner circle of the next Facebook may just be a click away.
“Crowdfunding” is the practice of funding a venture by raising numerous small amounts of money from a large group of investors, typically through the use of the internet. It started with a ripple in the form of websites supporting the arts and, in a world dominated by social media, is quickly becoming a wave in other industries, particularly for start-up technology companies. Crowdfunding opens up a whole new way for individual investors to participate in the early stages of potentially great companies, but investors need to know and understand the risks involved before strapping on their surf boards and catching this wave.
The foregoing is an excerpt from the Cantech Letter. To read the rest of this article, visit: http://www.cantechletter.com/2012/05/a-facebook-in-the-crowd-get-ready-for-crowdfunding-2-0/
Timothy W. Murphy, LL.M, is a Vancouver-based technology and business lawyer. To contact Murphy & Company, call (604) 360-7014 or email: firstname.lastname@example.org.
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