Crowdfunded companies are ‘ghosting’ their investors – and getting away with it

By Andrew A. Schwartz, DeMuth Chair of Business Law, University of Colorado Boulder

Imagine you invest US$500 to help a startup get off the ground through investment crowdfunding. The pitch is slick, the platform feels trustworthy and the company quickly raises its target amount from hundreds of people just like you. Then – silence. No updates, no financials, not even a thank-you.

You’ve been ghosted – not by a friend, but by a company you helped fund.

This isn’t just an unlucky anecdote. It’s happening across the United States. And while it may violate federal law, there’s little enforcement – and…

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