Comment Crowdfunding = mortal threat to Wall Street (Score 1) 112
Consider that a typical ownership cut demanded by venture capitalists in California (3000 Sand Hill Road types) is 30 to 50 percent. Kickstarter or Kickstarter clones could do very well just by saying if you (the individual) invest in XYZ and it pans out, you'll get your share of the 10 percent equity slice reserved for investors. So it could be easy for knowledgeable engineers, technicians and scientists to "play" the investment game via Kickstarter, using their insights from work experience, and do pretty well over the long haul. For start up founders, giving up 10% via Kickstarter is hella better than giving up 50% to 3000 Sand Hill Road folks. Why torture yourself trying to impress plump VC guys to give you 10 minutes and take 50% of your future profits, when you can just lay out your idea on Kickstarter and let the subject matter experts vote with their dollars?
Crowdfunding is therefore to the Anglo-Saxon financial elites what the comet was to the dinosaurs.
Therefore it would make sense that chaps such as Mitt Romney and friends are working quietly but very hard on getting crowdfunding outlawed or marginalized. Watch what happens in the next few years. This will of course only accelerate the decline of R&D and technological leadership in the U.S., but for the $$$ elites, that is some future generation's problem.