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Re:Tech Startup Crowdfunding Isn’t All It’s Cracked Up to Be by tptacek on Tuesday December 08, 2015 @12:56PM (#10698062)
I understand the utility of that middle ground but not how equity crowdfunding provides it. The issue here is the failure rate for companies. Good companies fail routinely, and that includes companies that aren't on 100x trajectories. The high rate of failure requires higher returns from the winners. Accounting for realistic failure rates, I simply don't see how you can build a model that makes 2x returns from winners workable for outside investors.

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