Crowdfunding Offers Access to Capital, but Carries Risks

October 5, 2012Quotes & Mentions
Dayton Business Journal
Many entrepreneurs looking for funding to jumpstart their businesses are finding that traditional sources of capital — such as loans, venture capital or personal savings — have run dry. These business owners may want to turn to the masses for help through crowdfunding.

The Jumpstart Our Business Startups Act (JOBS Act), passed in April, requires the Securities Exchange Commission to create rules that will allow for crowdfunding for investment purposes. However, Dinsmore’s Chuck Hertlein, a partner with experience in business fundraising, believes it’s unlikely to be an attractive option for many businesses.

The Dayton Business Journal recently sat down with Hertlein to fully understand the pitfalls of crowdfunding. Read the full article below to learn what kind of businesses would want to use crowdfunding and much more.