They sound great in theory but not in practice. They violate securities laws in most juridsctions (because they are public offerings and hence need a prospectus). As a VC I...
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Crowd-sourcing funding has certainly worked for smaller amounts (think Kiva.org) and companies have obviously navigated the securities red tape as we've seen the launch of things like https://www.profounder.com/ (actually started by Kiva founder Jessica Jackley). Seems like an interesting way to raise initial seed capital to get a proof of concept - a fringe benefit is also potential early stage feedback on product/market fit.