Crowd Funding Raises Caution
Lane Powell Shareholder Cliff Spencer was quoted in the Portland Business Journal on April 20 in an article titled “Crowd Funding Raises Caution.” The article is about the new crowd funding law and the security fraud concerns it creates. The new law allows startup and early-stage companies to use the Internet to raise up to $1 million in small investments from lots of people.
“Any time you have people with access to large amounts of other people’s money, there is the real potential that some of that money will not reach its intended use,” said Cliff Spencer, a securities attorney and partner with Lane Powell PC’s Portland office. …
… “Crowd funding could provide access to the necessary startup capital for a lot of small businesses that aren’t highly sought after by traditional investors, like angel investors and venture capital firms,” said Spencer.