Re:S.E.C. Gives Small Investors Access to Equity Crowdfunding
by datashovel on Saturday October 31, 2015 @09:11AM
(#10482538)
I think I see where the disconnect is from my end here. I guess I was thinking that this will have broader reach than just startups.
If a business has been around for 10 years and they're running into a tough patch, I think it could be reasonable to think one of their options would be to offer equity in their business in exchange for money.
Investing in that type of business I think won't necessarily produce the same percentage of "failed investments" so much as it will simply provide a lot more options that will earn the investor less than 2x. Long term prospects, perhaps 2x or even 3x returns may happen, but I doubt anyone will be doing this thinking they're going to find a 1000x return.
If a business has been around for 10 years and they're running into a tough patch, I think it could be reasonable to think one of their options would be to offer equity in their business in exchange for money.
Investing in that type of business I think won't necessarily produce the same percentage of "failed investments" so much as it will simply provide a lot more options that will earn the investor less than 2x. Long term prospects, perhaps 2x or even 3x returns may happen, but I doubt anyone will be doing this thinking they're going to find a 1000x return.