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  • CrowdFunding: The Intent Of The Crowd 0 comments
    May 16, 2012 10:35 PM

    What has happened to the phrase "Assume Positive Intent" when the main stream media writes about the JOBS Act and Equity CrowdFunding?

    Nearly every article I have come across in a news search of crowdfunding finds that the headline, if not the entire article, discusses the opportunity for fraud to occur when dealing in an equity crowdfunding opportunity. Long before CrowdFunding came in to existence there was fraud, bad people will do (and always have done) bad things. Does that mean that progress comes to a halt? Does one decide not to innovate and start a business because someone might steal from them one day?

    In a rare bipartisan decision, Congress and the President have chosen to assume the positive intent of the Crowd (In this case, the American people). The JOBS Act and legalization of equity crowd funding will prove to be a wise decision in regards to small business growth and in-turn job growth for the US economy. Is that to say there will not be incidents of fraud, of course not, there will be but the cases of success will far out way any such fraud.

    By looking at the success crowdfunding has had for both not-for-profit and artistic endeavors, it is clear the process works and works well. The crowd is far smarter then any regulatory agency can or will ever be. The crowdfunding method works because the leaders in crowdfunding, opened their sites with the assumption of positive intent.
    As the masses join, there will be bumps in the road but again, does that mean that we shutter the doors and allow our domain names to expire?

    Assumption of Positive intent is what has made the great companies of America great. Whether it was Sam Walton moving product from behind counters for customers to touch and feel at Walmart or Steve Jobs opening the first Apple stores with no security on the Power Books. The winners always see the best in their employees, their customers and the crowd.

    The crowd will do a far better job in vetting out fraud then any government agency ever could or will. Enron, WorldCom and Madoff would have had a tougher time with the crowd then the SEC.

    Accountable platforms, vetted small businesses and investor due diligence will be the difference between the success or failure of the Crowdfunding Platforms as a means of funding small business and job growth but we must first create an environment of trust within our industry.

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