“That’s what a friend of mine, an experienced securities attorney, said, when she heard about congressional efforts to expand crowdfunding into the entrepreneurial space.”

“Crowdfunding offers a unique source of funding to businesses that are unable to acquire bank loans or access the formal capital markets. With all of its unique benefits, crowdfunding also creates an extremely attractive platform for widespread, small-scale fraud. This fraud typically occurs when investors commit small amounts of money to a project, they are unlikely to want to pay lawyers to pursue fraudsters, and class action lawyers are unlikely to think such cases are worth their while. This also remains true for the State Attorney General and the SEC; they do not have the resources to pursue anything except the most egregious cases.

“This is where CrowdCheck is critical. CrowdCheck offers protection against potential fraud and helps investors make good investment decisions. CrowdCheck does the “due diligence” that lets investors (Grandmas included) see the results of this due diligence in an easy-to-understand report. CrowdCheck walks the entrepreneur through the complicated disclosure process so that they know they meet legal requirements and compliance.”

“CrowdCheck’s team is comprised of investigators, business lawyers, experienced securities attorneys, and seasoned entrepreneurs.  For almost three decades, I personally have been doing diligence for companies that want to raise money. We think the capital markets offer great potential to improve everyone’s financial situation, but only if we all work together to keep the markets compliant.”