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Crowdfunding

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Public Or Private Venture Capital?, Darian M. Ibrahim Sep 2019

Public Or Private Venture Capital?, Darian M. Ibrahim

Darian M. Ibrahim

No abstract provided.


Equity Crowdfunding: A Market For Lemons?, Darian M. Ibrahim Sep 2019

Equity Crowdfunding: A Market For Lemons?, Darian M. Ibrahim

Darian M. Ibrahim

No abstract provided.


Crowdfunding Signals, Darian M. Ibrahim Sep 2019

Crowdfunding Signals, Darian M. Ibrahim

Darian M. Ibrahim

Entrepreneurs can now “crowdfund,” or sell securities to unaccredited investors over the Internet, to raise capital. But will these companies be able to attract the follow-on investors (angels and venture capitalists) that are necessary for long-term success? Angels and VCs face extreme levels of information asymmetry when deciding whether to fund a company. Signals can reduce this asymmetry. Early commentary argues a company only crowdfunds as a last resort for fear of sending a negative signal about the company’s quality to follow-on investors. This Article argues the inverse. This Article argues a successful crowdfunding campaign can send a positive ...


Crowdfunding Without The Crowd, Darian M. Ibrahim Sep 2019

Crowdfunding Without The Crowd, Darian M. Ibrahim

Darian M. Ibrahim

The final crowdfunding rules took three years for the Securites and Exchange Commission to pass, but crowdfunding—the offering of securities over the Internet—is now a reality. But now that crowdfunding is legal, will it be successful? Will crowdfunding be a regular means by which new companies raise money, or will it be relegated to a wasteland of the worst startups and foolish investors? This Article argues that crowdfunding has a greater chance of success if regulators abandon the idea that the practice does (and should) employ “crowd-based wisdom.” Instead, I argue that crowdfunding needs intermediation by experts that ...


Crowdfunding Signals, Darian M. Ibrahim Sep 2019

Crowdfunding Signals, Darian M. Ibrahim

Darian M. Ibrahim

No abstract provided.


Crowdfunding Without The Crowd, Darian M. Ibrahim Sep 2019

Crowdfunding Without The Crowd, Darian M. Ibrahim

Darian M. Ibrahim

No abstract provided.