Is Crowdfunding Poised To Change How The “Average Joe” Invests?

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Sometimes regulators’ efforts to protect consumers miss the mark. Case in point. In 1980, the State of Massachusetts actively intervened to prevent its citizens from investing in a flashy new tech startup for fear that the suggestible residents of the Bay State would be taken in and taken for a ride by those fast talking boys from Cupertino going on and on about “the personal computer.”

We all know how this story turned out. In the 34 intervening years, that startup grew up to be the largest company in the world with a market cap marching Sherman-like toward the $1 trillion mark. And while there are no doubt Massachusett-ites who to this day wish their beloved state had perhaps been a bit less diligent in protecting them from the horrors of investing in Apple in 1980, the reality is that most startups do not go on to be Apple.

Most startups die – although there is some debate about how many do. The more optimistic numbers for tech/Internet firms since 2000 reflect a 70 percent failure rate, while the upper limit puts that figure at closer to 90 percent. And those not-quite-but-almost-inevitable deaths usually come after relatively short lives – the average startup fails within 20 months of its last funding round, with the median hovering around 15 months.

To read the full article, click http://s.coassets.com/zWO

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