What does Weiner’s Photo have to do with Crowd Fund Investing?

There is a distinct parallel between the events that have taken place with Representative Weiner and Crowd Funding.  In the Startup Exemption we discuss how social media will be self-policing and weed out fraud.  It will do so by providing platforms that allow potential investors to ask questions of would be entrepreneurs.  If the entrepreneur doesn’t answer the questions to the satisfaction of the crowd, he most likely won’t be funded.  Since people’s reputations precede them and since entrepreneurs on these platforms will be primarily going for funding from their friends, family & community any discrepancies can also be uncovered by the crowd.  As is the case with Representative Weiner.  The advent of the Internet and Technology has made our lives more transparent whether we want it to or not.  If you want to be an entrepreneur and raise capital on Crowd Fund Investing platforms, you can only assume that your “wears” will be shown.  Try to fool the crowd and you might be fooled yourself.  Believe it or not, Representatives Weiner’s incident added further proof to the idea that the crowd can weed out fraud and protect the investor.



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