Equity crowdfunding sites cherry-pick case studies to herald successful campaigns. It is an industry hazard. One challenge: the platforms claim to be responsible for due diligence. Yet there is a conflict-of-interest, especially in trending ideas, when they themselves make money from the capital-raising process. Microventures.com, for instance, asserts that it is easier to get into Harvard, than it is to be listed on their portal. The buzz is lofty. As a matter of prudence, risk seekers can benefit by looking at crowdfunding failures, although some of the most notable are reward-driven, rather than equity-based. Consider the hand-held drone that flew nowhere or the low-gravity footwear that drifted away. Backers beware. Among other points, fraud may be a lingering specter in this corner of the startup ecosystem. ■
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