Expert Slams Crowdfunding As A ‘Fad’

Thursday, November 7, 2013

Dr John Mullins, associate professor of management practice in entrepreneurship, says the effectiveness of crowdfunding is hindered by several stumbling blocks.

Mullins argues that despite its selective success, the crowdfunding industry’s choice of businesses to invest in has been a failure.“Much of the venture capital industry has a poor record at picking companies to invest in, not to mention often delivering negative returns to their investors,” he said.

Mullins even believes a backlash is likely once crowdfunded investments fail to offer returns. He also criticised crowdfunding platforms for offering meagre returns for the amount of work done by the entrepreneurs.

Source: Gulf Business (link opens in a new window)