There is a distinct parallel between the events that have taken place with Representative Weiner and Crowd Funding. Â In the Startup Exemption we discuss how social media will be self-policing and weed out fraud. Â It will do so by providing platforms that allow potential investors to ask questions of would be entrepreneurs. Â If the entrepreneur doesn’t answer the questions to the satisfaction of the crowd, he most likely won’t be funded. Â 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. Â As is the case with Representative Weiner. Â The advent of the Internet and Technology has made our lives more transparent whether we want it to or not. Â 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. Â Try to fool the crowd and you might be fooled yourself. Â 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.
