FG shareholder and nationally recognized crowdfunding attorney Mark Roderick was recently tapped by Billboard magazine for commentary regarding recent issues in the music crowdfunding space. PledgeMusic, a crowdfunding service used to fund thousands of projects since its launch in 2009, has recently come under scrutiny for failing to pay out funds that are owed to creators using the platform. Artists are leaving the site in droves in favor of other platforms such as Kickstarter and IndieGoGo. The issues have raised questions regarding whether or not the industry needs to be more closely regulated. Mark says that, before now, he would have said the rewards-based crowdfunding space was operating "extremely effectively" without regulation. "Since the beginning of donation-based crowdfunding, it has been surprisingly free of fraud and bad actors. This would be the man-bites-dog story," he says. "By far the exception. But for good or for worse, regulation often is the result of the man-bites-dog story."
February 8, 2019 | Billboard