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    04.19.12 Professor Roberta Karmel Comments on Crowdfunding
    photo of a professor

    Professor Roberta Karmel spoke to several news outlets about the pending Jumpstart Our Business Start-Ups (JOBS) Act that will bring crowdfunding to the business sector. Crowdfunding previously remained in the realm of charity and fundraising, but with the passage of the new legislation, individuals will now be able to invest small amounts of money on the Internet to businesses without fulfilling standard regulatory hurdles. Critics of the law, including Professor Karmel, argue that opening up investments to anyone online is potentially dangerous. She said, “This is just going to lead to some kind of bubble or there will be fraudulent offerings, and then Congress will say we need more regulation.”