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The biggest news about crowdfunding isn’t the crowdfunding act, its investor liquidity

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Sort of under the radar but it should be front and center is the fact that NASDAC purchased Second Market.

This adds liquidity to startup investing expanding the market size dramatically.

Startup investors, invest first, get diluted by new investment and then get their preference return diluted by later rounds of preferred return investors. This is why they call them Angels. And the biggest reason they invest isn’t to make money. They would be fools to think so. A few do and those new to the game would do well to follow those who have demonstrated a history of profitable early stage investors.

Wall Street will end up owning the startup investing game. They know how to sell, how to make and trade markets and make a fee every time something happens. The money game is the original digital, with liquidity.

Its nice to be the bookie. Just ask Warren Buffet, as insurance companies are just big bookies.

Give it a few years but wait for the startup remake of LINK.

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